REG - UK Oil & Gas Inv PLC - Update - Isle of Wight <Origin Href="QuoteRef">UKOGa.L</Origin>

UK Oil & GasAnnouncement

31/01/2018 07:05

RNS Number : 3975D
UK Oil & Gas Investments PLC
31 January 2018
UK Oil & Gas Investments PLC
("UKOG" or the "Company")
Isle of Wight Update 
UK Oil & Gas Investments PLC (London AIM: UKOG) announces that to focus upon appraising the onshore PEDL331 Arreton oil discovery and satellite exploration prospects, it has informed the Oil and Gas Authority that it will not seek any further extension to the offshore P1916 Licence. Consequently, the P1916 Licence, in which the Company held a 100% interest, has now lapsed. In the Company's view the offshore Licence's low geological prospectivity, high environmental sensitivity and consequential high associated drilling costs merited no further commitment of UKOG's financial or technical resources. No remaining P1916 Licence obligations remain.
As previously reported in January 2016, Xodus' independent report allocated a gross mean aggregated oil in place of 227 million barrels ("MMbbl") to the onshore Arreton oil discovery and associated Arreton South and North satellite prospects. Recoverable gross 2C Contingent Resources were calculated as 15.7 MMbbl, with 10.2 MMbbl net to UKOG. The Company holds a 65% interest in PEDL331. 
Arreton site selection and regulatory permitting activities are now underway to permit a planned appraisal drilling campaign in the first half of 2019.
Stephen Sanderson, UKOG's Executive Chairman, commented:
"The Arreton discovery on the Isle of Wight's remains a key element of the company's 2018 and 2019 growth strategy and plans. We look forward to working with our partners towards a successful 2019 appraisal drilling campaign." 
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 / Leif Powis  Tel: 0207 397 8919
Public Relations
Brian Alexander / David Bick Tel: 01483 900583/ 01483 243450 
Glossary
2C 
denotes the mid or best estimate scenario of Contingent Resources
Contingent Resources
Contingent Resources are 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.
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
oil in place (OIP)
the quantity of oil or petroleum that is estimated to exist originally in naturally occurring accumulations before any extraction or production
UKOG Licence Interests
The Company has interests in the following nine 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 of multiple zones underway
Holmwood3
PEDL143
40%
UKOG
Europa Oil & Gas (Holdings) plc
91.8
Holmwood-1 exploration well planned in 2018
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
Planning Permission & EA permit granted for production tests and two wells
Horse Hill5
PEDL246
32.435%
Horse Hill Developments Ltd
Horse Hill Developments Ltd
43.6
As above
Isle of Wight (Onshore)2, 3
PEDL331
65%
UKOG
UKOG
200.0
Preparing Arreton-3 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.

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