REG - UK Oil & Gas PLC - D&M Horndean Field Resource Report

UK Oil & GasAnnouncement

28/06/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240628:nRSb3246Ua&default-theme=true

RNS Number : 3246U  UK Oil & Gas PLC  28 June 2024

UK Oil & Gas PLC

("UKOG" or the "Company")

 

D&M Horndean Field Resource Report

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that a new
Competent Person's Report ("CPR") has been completed on the Horndean field
(UKOG 10% non-operated interest) by Dallas, Texas based DeGolyer &
MacNaughton, a globally recognised oil & gas reserve estimation and
valuations consultancy. The CPR's findings are summarised in Tables 1 and 2
below.

Highlights:

·    22% increase in average field daily production in 2023 vs 2022

·    Increased net UKOG 2P reserves + 2C contingent resources of 186,200
barrels aggregate vs 179,300 barrels in 2022

·    Increased 2023 UKOG net share of oil sales revenues of £297,000 vs
£287,000 in 2022

·    Increased 2023 UKOG net earnings of £147,000 after costs vs
£136,000 in 2022

Table 1: Horndean CPR Reserves

 Case: D&M forward oil price        Full Field (100%)       UKOG Net (10%)
 PRMS Reserves                      1P      2P      3P      1P     2P     3P
 Recoverable oil (million barrels)  0.93    1.06    1.19    0.09   0.11   0.12

 

Table 2: Horndean CPR Contingent Resources

 

 Case: D&M forward oil price        Full Field (100%)       UKOG Net (10%)
 PRMS Reserves                      1C      2C      3C      1C     2C     3C
 Recoverable oil (million barrels)  0.35    0.80    1.30    0.03   0.08   0.13

As of 31 December 2023, D&M assess that UKOG's share of Horndean's
aggregated mid case 2P Reserves and 2C Contingent Resources have now increased
to 186,200 barrels UKOG net from 179,300 barrels in 2022. The aggregate sum
comprises 106,400 barrels 2P Reserves and 79,800 barrels 2C recoverable
Contingent Resources.

In 2023, UKOG's net share of Horndean production revenues was £297,000, with
net earnings after costs of £147,000. Total gross field production in 2023
averaged 123 barrels of oil per day, a 22% increase from 101 barrels of oil
per day in 2022.

Installation of new electric surface pumps was completed in 2022 and which
resulted in increased production rates, lower electrical power consumption and
a corresponding increase in 2023 field earnings, despite a number of workovers
and rod replacements being required throughout the past year.

The CPR was prepared in accordance with the requirements and standards of the
Petroleum Resources Management System ("PRMS") of the Society of Petroleum
Engineers. This CPR has not been prepared under the AIM rules for oil &
gas companies.

Stephen Sanderson UKOG's Chief Executive commented:

"The growth in Horndean reserves, daily rate, earnings and profit are both
encouraging and welcome news for the Company. Horndean remains a mature field
that shows remarkably low production decline."

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 / Guzyal Mukhametzhanova
                                       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

 1C                    the low case estimate of Contingent Resources. There is estimated to be a 90%
                       probability that the quantities actually recovered could equal or exceed this
                       estimate, i.e., P90 case
 2C                    the mid-case or average estimate of Contingent Resources. There is estimated
                       to be a 50% probability that the quantities actually recovered could equal or
                       exceed this estimate, i.e., P50 case
 3C                    the high case estimate of Contingent Resources. There is estimated to be a 10%
                       probability that the quantities actually recovered could equal or exceed this
                       estimate, i.e., P10 case
 1P                    the low case or proven estimate of Reserves. There is estimated to be a 90%
                       probability that the quantities actually recovered could equal or exceed this
                       estimate, i.e., P90 case
 2P                    the mid-case or proven plus probable estimate of Reserves. There is estimated
                       to be a 50% probability that the quantities actually recovered could equal or
                       exceed this estimate, i.e., P50 case
 3P                    the high case or proven plus probable plus possible estimate of Reserves.
                       There is estimated to be a 10% probability that the quantities actually
                       recovered could equal or exceed this estimate, i.e., P10 case
 Contingent 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 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
 CPR                   Competent Person's Report, a Petroleum Resources report prepared by an
                       independent Competent Person(s), providing an estimated range of remaining
                       recoverable resources and their potential monetary valuation in accordance
                       with the relevant reporting standard (in this case the 2018 Society of
                       Petroleum Engineers' PRMS). This CPR has not been prepared under the AIM rules
                       for oil & gas companies.
 Reserves              those quantities of petroleum anticipated to be commercially recoverable by
                       application of development projects to known accumulations from a given date
                       forward under defined conditions. Reserves must satisfy four criteria:
                       discovered, recoverable, commercial and remaining (as of the evaluation's
                       effective date) based on the development project(s) applied. Reserves 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 development and production status.

 

 

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDFPMATMTATMMI