REG - UK Oil & Gas Inv PLC - Acquisition of further interest in PEDL143 <Origin Href="QuoteRef">UKOGa.L</Origin>

UK Oil & GasAnnouncement

25/09/2017 12:06

RNS Number : 7222R
UK Oil & Gas Investments PLC
25 September 2017
UK Oil & Gas Investments PLC
("UKOG" or the "Company")
Acquisition of a Further Interest in Onshore Licence PEDL143, 
Holmwood-1 Kimmeridge & Portland Exploration Prospect, Weald Basin, UK
UK Oil & Gas Investments PLC (London AIM: UKOG) is pleased to announce that it has agreed to acquire a further 10% interest in Licence PEDL143 ("the Licence") from Warwick Energy Exploration and Production Limited ("Warwick"). Upon completion, the Company will hold a 40% interest in the Licence, which is currently operated by Europa Oil & Gas Limited. 
The Licence, covering an area of 91.8 km2, contains the Holmwood prospect, which provides a near -term opportunity to test Kimmeridge, Portland and Corallian reservoir targets lying within a look-alike geological feature to both theCompany's Horse Hill-1 ("HH-1") oil discovery, located some 8.5 km to the east, and the Broadford Bridge-1 and 1z discovery located some 24 km to the south. As previously reported on 21 March 2016, HH-1 flow tested at a significant commercial aggregate stable dry oil rate of 1,688 barrels of oil per day from the two uppermost Kimmeridge Limestone units and the overlying Portland.
Planning consent from Surrey County Council is in place to drill and flow test the Holmwood-1 exploration well, which is now scheduled for the coming winter season. 
Transaction Summary
For a Purchase Price of 750,000, the Company will receive Warwick's 10% working interest in the Licence. The total Purchase Price is payable via the issue to Warwick of 9,382,271 new ordinary shares in UKOG with an effective date of 22 September 2017. Completion of the acquisition is conditional upon the Oil and Gas Authority's usual regulatory consent. Upon completion, the Company's Holmwood-1 farmout obligation to Warwick will cease. 
A further announcement will be made upon completion.
Stephen Sanderson, UKOG's Executive Chairman, commented:
"This acquisition is another step in UKOG's strategy to further consolidate and increase its holdings in the Kimmeridge oil play. The forthcoming Holmwood well provides a valuable near-term opportunity to test a geological look-alike of both our Broadford Bridge and Horse Hill oil discoveries, and which can hopefully provide further proof of the new Kimmeridge play concept. The significant overlying Portland target also provides additional low-risk potential reserve upside. We look forward to the well's spud in the coming winter and the valuable information it will provide for our quest to monetise the Company's Kimmeridge and Portland oil."
Qualified Person's Statement:
Stephen Sanderson, UKOG's Executive Chairman, who has over 35 years of relevant experience in the oil industry, has approved the information contained in this announcement.Mr Sanderson is a Fellow of the Geological Society of London and is an active member of the American Association of Petroleum Geologists.
For further information, please contact:
UK Oil & Gas Investments PLC
Stephen Sanderson / Kiran Morzaria  Tel: 01483 243450 
WH Ireland (Nominated Adviser and Broker)
James Joyce / James Bavister Tel: 020 7220 1666
Cenkos Securities PLC (Joint Broker)
Nick Tulloch / Neil McDonald  Tel: 0131 220 6939
Square 1 Consulting (Public Relations)
Brian Alexander / David Bick Tel: 01483 243450 
Glossary
discovery
a discovery is a petroleum accumulation for which one or several exploratory wells have established through testing, sampling and/or logging the existence of a significant quantity of potentially moveable hydrocarbons
flow test
a test period where hydrocarbons are flowed to surface through a test separator. Key measured parameters are oil and gas flow rates, downhole pressure and surface pressure. The overall objective is to identify the well's capacity to produce oil at a commercial flow rate and to recover oil in commercial quantities or volumes
limestone
a sedimentary rock predominantly composed of calcite (a crystalline mineral form of calcium carbonate) of organic, chemical or detrital origin. Minor amounts of dolomite, chert and clay are common in limestones. Chalk is a form of fine-grained limestone, being made of the remains of calcareous planktonic algae called coccoliths. The Kimmeridge Limestones are comprised of fine grained coccoliths, fine grained calcium carbonate mud, clay minerals, together with dark grey organic matter.
UKOG Licence Interests
The Company has interests in the following ten UK licences:
Asset
Licence
UKOG's Interest
Licence Holder
Operator
Area (km2)
Status
Avington1
PEDL070
5%
UKOG (GB) Limited
IGas Energy Plc
18.3
Field in stable production
Baxters Copse2
PEDL233
50%
UKOG Weald Limited
IGas Energy Plc
89.6
Appraisal/development well planned; licence extended to 2018
Broadford Bridge 3
PEDL234
100%
Kimmeridge Oil & Gas Limited 4
Kimmeridge Oil & Gas Limited 4
300.0
BB-1&1z drilling completed testing underway
Holmwood3
PEDL143
40%
UKOG
Europa Oil & Gas (Holdings) plc
91.8
Holmwood-1 exploration well planned in 2017
Horndean1
PL211
10%
UKOG (GB) Limited
IGas Energy Plc
27.3
Field in stable production
Horse Hill5
PEDL137
32.435%
Horse Hill Developments Ltd
Horse Hill Developments Ltd
99.3
Submitted planning application for long term production tests and drilling of two wells
Horse Hill5
PEDL246
32.435%
Horse Hill Developments Ltd
Horse Hill Developments Ltd
43.6
As above
Isle of Wight (Offshore)3
P1916
100%
UKOG Solent Limited
UKOG Solent Limited
46.7
Preparing drilling planning submission
Isle of Wight (Onshore)2, 3
PEDL331
65%
UKOG
TBA
200.0
Preparing drilling planning submission
Markwells Wood2
PEDL126
100%
UKOG (GB) Limited
UKOG (GB) Limited
11.2
Submitted planning application for appraisal and field development
Notes:
1. Oil field currently in production.
2. Oil discovery pending development and/or appraisal drilling.
3. Exploration asset with drillable prospects and leads. Contains the Broadford Bridge-1 and 1z discovery well and the extension of the Godley Bridge Portland gas discovery.
4. UKOG has a 100% interest in Kimmeridge Oil & Gas Limited, which has a 100% interest in PEDL234.
5. Oil discovery with recently completed flow testing.
6. UKOG has a direct 49.9% interest in HHDL, which has a 65% interest in PEDL137 and PEDL246.
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

This information is provided by RNS
The company news service from the London Stock Exchange
  END
ACQOKPDKDBKDDCB