REG - UK Oil & Gas PLC - Avington Oil Production to Restart

UK Oil & GasAnnouncement

13/07/2023 07:00

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RNS Number : 8430F  UK Oil & Gas PLC  13 July 2023

UK Oil & Gas PLC

("UKOG" or the "Company")

 

 

Avington Oil Production to Restart

 

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that the
Avington Joint Operating Committee has now formally agreed to restart oil
production at the field. Prior to its 2017 shut-in, the field had produced
0.276 million barrels of an estimated mid case of 59 million barrels of
original oil in place ("OIP"), a recovery factor of only 0.47%. As the three
closest similar producing fields to Avington exhibit oil recoveries of around
6-13% of the assessed OIP, potentially significant remaining recoverable oil
resources lie within Avington for future exploitation.

 

Avington operations will recommence via a workover of Avington-3z, the field's
best performing well, which came on stream in 2007 and accounts for around 81%
of produced oil. Given the 5-year shut-in period, which potentially has
permitted reservoir pressure around the well to build up, some element of
"flush" production (i.e., higher than the flow rate prior to shut-in) is
expected upon production restart.

 

The field was granted new planning consent in December 2021. UKOG holds a 5%
non-operated interest in Avington and the surrounding licence.

 

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 / Allen D Howard                    Tel: 01483 941493

 WH Ireland Ltd (Nominated Adviser and Broker)
 James Joyce / James Bavister/ Andrew de Andrade       Tel: 020 7220 1666

 Communications
 Brian Alexander                                       Tel: 01483 941493

 

Glossary

 oil field              a subsurface oil accumulation existing within a single or multiple geological
                        reservoir unit from which oil is recovered to surface. Note that an oil field
                        can consist of one or more oil pools or distinct reservoirs.
 oil in place           the quantity of oil that is estimated to exist in naturally occurring
                        accumulations within the ground before any extraction to surface via
                        production
 recovery factor        the recoverable amount of oil in place, normally expressed as a percentage
 recoverable 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
 workover               the process of performing maintenance or remedial treatments on an oil or gas
                        well. In many cases, workover implies the removal and replacement of the
                        tubing string after the well has been killed and a workover rig has been
                        placed on location.

 

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.

 

 

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