REG - UK Oil & Gas Inv PLC - Broadford Bridge Licence Extension

UK Oil & GasAnnouncement

31/05/2018 07:05

RNS Number : 7460P
UK Oil & Gas Investments PLC
31 May 2018
 


UK Oil & Gas Investments PLC
 
("UKOG" or the "Company")
 
PEDL234 Broadford Bridge Licence Extension, Weald Basin, UK
 
UK Oil & Gas Investments PLC (London AIM: UKOG) announces that it has been informed by Kimmeridge Oil & Gas Limited ("KOGL"), that the Oil and Gas Authority ("OGA") has extended the licence term of its 100% owned PEDL234 licence ("Licence") from 30 June 2018 until 31 December 2023. KOGL is a wholly owned subsidiary of UKOG.
The Licence will now be converted to the 14th Licence Round Master Clauses Agreement which permits a Retention Area ("RA") covering the entirety of the 300 km2 Licence area to be created.
The agreed RA work programme comprises:
·     Drilling of two further Kimmeridge Limestone ("KL") step-out exploration wells in two new sites in the central area of the Licence. One well will also appraise the potentially significant Godley Bridge-1 Portland gas discovery
·     In the event of a commercial discovery, drill and flow test an appraisal well or sidetrack. Note that a sidetrack to the BB-1 discovery would fulfil this commitment  
·     Following completion of the drilling programme and in the event of a commercial discovery, acquire 50 km of 2D seismic data and submit a Field Development Plan to OGA
Stephen Sanderson, UKOG's Executive Chairman, commented:
 
"This key five-year plus licence extension will enable the Company to drill its two planned new Kimmeridge exploration wells in the deepest and most oil generative Kimmeridge section of the Weald Basin. Locations for both wells, situated between the Horse Hill oil discovery to the north and the BB-1/1z and Balcombe-1 discoveries to the south, have been selected and the regulatory permitting process is underway to enable drilling in 2019. A further BB-1y sidetrack also remains very much on the cards."
 
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 Sinclair-Ford                                                           Tel: 020 7220 1666
 
Cenkos Securities PLC (Joint Broker)
Joe Nally / Neil McDonald                                                           Tel: 0207 397 8919
 
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 flow test or well test involves testing a well by flowing hydrocarbons to surface, typically 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 hydrocarbons at a commercial flow rate




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




Retention Area ("RA")


An area covering all or part of an onshore UK "14th Round New Model" Licence that can be retained until the expiry date without any relinquishment and subject to a work programme agreed by the OGA. Usually, as in the case of PEDL234, the Retention Area covers the entire licenced area




seismic


use of reflected and refracted sound waves generated at the surface to ascertain the nature of subsurface geological structure.  2D seismic records a two-dimensional cross-section through the subsurface collected using the two-dimensional common mid-point method. 3D seismic records a three-dimensional image through the subsurface using the common depth-point method




appraisal well


a well designed to determine the lateral extent of a discovered hydrocarbon accumulation or play.




 
UKOG Licence Interests
 
The Company has interests in the following UK licences:




Asset


Licence


UKOG's Interest


Licence Holder


Operator


Area (km2)


Status




Avington 1


PEDL070


5%


UKOG (GB) Limited


IGas Energy Plc


18.3


Field in stable production




Baxters Copse 2


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 and testing of multiple zones completed




Holmwood 3


PEDL143


40%


UKOG


Europa Oil & Gas (Holdings) plc


91.8


Holmwood-1 exploration well planned in 2018




Horndean 1


PL211


10%


UKOG (GB) Limited


IGas Energy Plc


27.3


Field in stable production




Horse Hill 5


PEDL137


32.435%


Horse Hill Developments Ltd ⁶


Horse Hill Developments Ltd ⁶


99.3


Production tests and further appraisal well(s) scheduled for 2018




Horse Hill 5


PEDL246


32.435%


Horse Hill Developments Ltd⁶


Horse Hill Developments Ltd ⁶


43.6


As above




Isle of Wight (Onshore) 2, 3


PEDL331


65%


UKOG


UKOG


200.0


Preparing Arreton-3 oil discovery appraisal well planning submission




Markwells Wood 2


PEDL126


100%


UKOG (GB) Limited


UKOG (GB) Limited


11.2


Revised drilling and testing planning application underway




 
Notes:
 
1. Oil field currently in production.
2. Oil discovery pending development and/or appraisal drilling.
3. Exploration asset with drillable prospects and leads. PEDL234 contains the Broadford Bridge-1 and 1z

  discovery well, the extension of the Godley Bridge Portland gas discovery plus further exploration

  prospects.
4. UKOG has a 100% interest in Kimmeridge Oil & Gas Limited, which has a 100% interest in PEDL234.
5. Oil discovery with successful flow test in 3 zones, further long-term testing scheduled in 2018
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.




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