REG - UK Oil & Gas PLC - Completion of Resan licence agreement with AME
RNS Number : 2281MUK Oil & Gas PLC20 January 2021UK Oil & Gas PLC
("UKOG" or the "Company")
Completion of Turkish Resan licence participation agreement with AME
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that following last week's formal government consent to the Company's 50% ownership of the 305 km² Basur-Resan oil appraisal and exploration licence ("the Licence"), it has now also completed the transaction with Aladdin Middle East Ltd ("AME"). Effective forthwith the conduct of the Licence's operations will now be governed by the respective joint operating agreement.
Both the Company and AME will now work towards finalising the design and delivery of a successful first appraisal well, Basur-3, aimed at establishing the commerciality of the aerially extensive and as yet undeveloped Basur-Resan oil discovery.
As per the Company's 15 January 2021 announcement, the board views the Licence's forthcoming 2021 appraisal drilling programme to present a compelling and potentially transformational growth opportunity for the Company. Further updates will be issued in due course.
A newly updated and expanded Turkey presentation is available on the Company's website: https://www.ukogplc.com/ul/UKOG_Turkey_Slides%20_FINAL_190121.pdf
Stephen Sanderson UKOG's Chief Executive commented:
"We look forward to a long and successful partnership with AME and to proving Basur-Resan to be commercially viable, a potentially significant and transformational prize for the Company."
Qualified Person's Statement
Matt Cartwright, UKOG's Commercial Director, who has 37 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 / Kiran Morzaria
Tel: 01483 941493
WH Ireland Ltd (Nominated Adviser and Broker)
James Joyce / James Sinclair-Ford
Tel: 020 7220 1666
Communications
Brian Alexander
Tel: 01483 941493
Glossary
discovery
A petroleum accumulation (oil in this case) 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
UKOG Licence Interests
The Company has interests in the following UK and international licences:
Asset
Licence
UKOG Interest
Licence Holder
Operator
Area (km2)
Status
Avington 1
PEDL070
5%
UKOG (GB) Limited
IGas Energy Plc
18.3
Field temporarily shut in
Loxley & Broadford Bridge 2, 3, 7
PEDL234
100%
UKOG (234) Ltd 4
UKOG (234) Ltd 4
300
Loxley/Godley Bridge gas discovery, BB-1/1z oil discovery
Horndean 1
PL211
10%
UKOG (GB) Limited
IGas Energy Plc
27.3
Field in stable production
Horse Hill ¹, ⁵
PEDL137
85.635%
Horse Hill Developments Ltd ⁶
Horse Hill Developments Ltd ⁶
99.3
Field in stable production
Horse Hill ¹, ⁵
PEDL246
85.635%
Horse Hill Developments Ltd ⁶
Horse Hill Developments Ltd ⁶
43.6
Field in stable production
Isle of Wight 2, 3
PEDL331
95%
UKOG
UKOG
200
Planning application submitted for Arreton oil appraisal well
Resan Turkey 2, 3, 8
M-47-b1, b2
50%
UKOG Turkey Ltd
Aladdin Middle East
305
Appraisal of Basur-Resan oil discovery plus further expl. prospects. Drilling planned in 2021
Notes:
1. Oil field currently in stable production.
2. Oil discovery pending development and/or appraisal drilling.
3. Exploration asset with drillable prospects and leads.
4. Contains the Loxley Portland gas accumulation, the Broadford Bridge-1/1z Kimmeridge oil discovery, plus further undrilled Kimmeridge exploration prospects.
5. Portland and Kimmeridge oil field with productive and commercially viable zones, HH-1 in stable oil production, production planning consent granted in September 2019, long-term production consent granted in March 2020.
6. UKOG has a direct 77.9% interest in HHDL, which has a 65% interest in PEDL137 and PEDL246.
7. Gas discovery pending appraisal drilling and development with underlying Kimmeridge potential
8. High-impact oil appraisal project with an upside OIP range of 150-500 mmbbl gross with expected recovery factors of 10-20% of OIP
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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