RNS Number : 9899E
UK Oil & Gas PLC
15 April 2025
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018. Upon publication of this announcement, this information is now considered to be in the public domain.
UK Oil & Gas PLC
("UKOG" or the "Company")
Significant Horndean Reserves Increase
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that, further to the Company's RNS of 10 February 2025, a new Reserves Report ("Report"), carried out for the Horndean field operator (Star Energy Group plc), has assessed that the field's remaining reserves have increased by up to 62% compared to the same period one year ago. UKOG's wholly owned subsidiary UKOG GB holds a 10% non-operated interest in Horndean.
The Report's assessed gross reserves as of 31st December 2024 and the reserve increase versus 31st December 2023, are summarised below:
· A 62% increase in proven (1P) reserves to 1.5 million barrels ("mmbbl", UKOG net 0.150 mmbbl)
· A 55% increase in proven plus probable (2P) reserves to 1.65 mmbbl (UKOG net 0.165 mmbbl)
· A 53% increase in proven plus probable plus possible (3P) reserves to 1.82 mmbbl (UKOG net 0.182 mmbbl)
· The assessed 2P reserve increase equates to 12 times the 2024 field production of 49,402 bbl.
The increase in reserves is a direct result of increased field performance via the combination of recent well workovers and the prior installation of new electric pumps in mid-2023 (see RNS of 28th June 2024).
The Report was prepared in accordance with the Petroleum Resources Management System approved by the Society of Petroleum Engineers.
Horndean reserves and contingent resources as of 31st December 2024 are summarised in tables 1 and 2 below:
Table 1: Horndean Reserves as of 31/12/2024
Horndean
Full Field (100%)*
UKOG Net (10%)
PRMS Reserves Category
1P
2P
3P
1P
2P
3P
Recoverable oil (mmbbl)
1.50
1.65
1.82
0.15
0.17
0.18
Table 2: Horndean Contingent Resources as of 31/12/2024
Horndean
Full Field (100%)*
UKOG Net (10%)
PRMS Contingent Resource Category
1C
2C
3C
1C
2C
3C
Recoverable oil (mmbbl)
0.18
0.74
1.23
0.02
0.07
0.12
Note:* As assessed for the operator Star Energy by DeGolyer & MacNaughton
Stephen Sanderson UKOG's Chief Executive commented:
"We are delighted that the Horndean field's materially increased performance has now been fully reflected in an equally material increase in assessed reserves. The resultant increased asset value, even at current Brent prices, is most welcome."
Qualified Person's Statement
Matt Cartwright, UKOG's Commercial Director, who has 40 years of relevant experience in the global oil industry, has approved the information contained in this announcement. Mr Cartwright is a Chartered Engineer and member of the Society of Petroleum Engineers.
For further information, please contact:
UK Oil & Gas Plc
Stephen Sanderson / Kris Bone Tel: 01483 941493
Zeus (Nominated Adviser and Broker)
James Joyce / James Bavister / Andrew de Andrade Tel: 0203 829 5000
CMC Markets (Joint Broker)
Douglas Crippen Tel: 0203 003 8632
Communications
Brian Alexander Tel: 01483 941493
Glossary
1C
the low case estimate of Contingent Resources. There is estimated to be a 90% probability that the quantities actually recovered could equal or exceed this estimate, i.e., P90 case
2C
the mid-case or average estimate of Contingent Resources. There is estimated to be a 50% probability that the quantities actually recovered could equal or exceed this estimate, i.e., P50 case
3C
the high case estimate of Contingent Resources. There is estimated to be a 10% probability that the quantities actually recovered could equal or exceed this estimate, i.e., P10 case
1P
The low case or proven estimate of Reserves. There is estimated to be a 90% probability that the quantities actually recovered could equal or exceed this estimate, i.e., P90 case
2P
The mid-case or proven plus probable estimate of Reserves. There is estimated to be a 50% probability that the quantities actually recovered could equal or exceed this estimate, i.e., P50 case
3P
The high case or proven plus probable plus possible estimate of Reserves. There is estimated to be a 10% probability that the quantities actually recovered could equal or exceed this estimate, i.e., P10 case
bbl
Barrel of oil
Contingent Resources
those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies. Contingent Resources are further categorised in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterised by their economic status
Reserves Report
A Petroleum Resources report prepared by an independent person(s), providing an estimated range of remaining recoverable resources and their potential monetary valuation in accordance with the relevant reporting standard (in this case the 2018 Society of Petroleum Engineers' PRMS). This Report has not been prepared under the AIM rules for oil & gas companies.
Reserves
Those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions. Reserves must satisfy four criteria: discovered, recoverable, commercial and remaining (as of the evaluation's effective date) based on the development project(s) applied. Reserves are further categorised in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterised by development and production status.
mmbbl
Million barrels of oil
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
END
UPDBZLLFEZLBBBB
