REG - UK Oil & Gas PLC - Horse Hill Farmin Update

UK Oil & GasAnnouncement

11/12/2023 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231211:nRSK2542Wa&default-theme=true

RNS Number : 2542W  UK Oil & Gas PLC  11 December 2023

UK Oil & Gas Plc

("UKOG" or the "Company")

 

Horse Hill Farmin Update

 

 

UK Oil & Gas Plc (London AIM: UKOG) is pleased to announce that further to
its announcement of 28(th) March 2023, the Company's relevant subsidiaries and
Pennpetro Energy Plc ("PPP")  have agreed to extend the conditional binding
Horse Hill farm-in term sheet until 30 June 2024, whereby PPP will farm-in to
the Horse Hill Oil Field on an incremental production only basis by paying
100% of both a 12 km² 3D seismic survey and a new crestal production well,
Horse Hill-3 ("HH-3"). The farmin remains subject to the completion of the
formal farmin agreement and necessary regulatory consents. The Company
currently holds an effective 85.635% interest in Horse Hill and the
surrounding PEDL137 and PEDL246 licences.

 

As per the 28(th) March 2023 RNS, UKOG's subsidiaries will retain 100%
ownership and rights to all oil production and revenues from Horse Hill-1
("HH-1"), ownership of HH-2/2z and will remain as the field and licence
operator. Upon completion of a successful farmin well by PPP, the Company's
subsidiaries will hold a 51% interest in all HH-3 production with UKOG's net
effective interest in HH-3 being 43.67%.

 

3D seismic acquisition is currently targeted for H1 2024.

 

Stephen Sanderson UKOG's Chief Executive commented:

 

"In addition to the continued profitability of the existing oil production
from HH-1, which UKOG's subsidiaries will retain all rights to, this farmin
offers the prospect of increased production and revenues to the Company at
zero capital cost, helping preserve working capital for the Company's other
significant growth projects, Dorset hydrogen storage and Loxley conventional
gas."

 

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 / Andrew de Andrade / James Bavister
                        Tel: 020 7220 1666

 

Communications

Brian Alexander
 
               Tel: 01483 941493

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside 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  UPDTMBATMTIBBMJ