REG - UK Oil & Gas PLC - Horse Hill Water Reinjection Update

UK Oil & GasAnnouncement

27/02/2023 07:00

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RNS Number : 0594R  UK Oil & Gas PLC  27 February 2023

UK Oil & Gas Plc

("UKOG" or the "Company")

 

 Horse Hill Water Reinjection Update

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that, as a
necessary precursor to its planned Horse Hill-2z ("HH-2z") Portland formation
water reinjection project, the Company has now installed three, shallow,
groundwater monitoring boreholes at its 85.635% owned producing oil field.

The water injection programme seeks to improve the field's net earnings by
approximately £250,000 per annum by eliminating the substantive costs of
tankering and disposing produced saline formation water at distant third-party
sites.  The removal of tankering will also reduce the field's overall carbon
footprint. The injection itself will help maintain reservoir pressure which
can help improve ultimate oil recovery.

Initial sampling of the boreholes, which terminate within the impermeable
Weald Clay formation, found no obvious groundwater immediately beneath the
site. A three month baseline monitoring period is now underway prior to the
start of reinjection operations.

Surrey County Council and the Environment Agency approved the installation of
these boreholes, the frequent sampling of which is designed to ensure that no
produced saline Portland formation water penetrates into the Weald Clay
sediments underlying the site.

Stephen Sanderson UKOG's Chief Executive commented:

 

"The new boreholes are a key step towards delivering HH-2z produced water
reinjection, ultimately designed to help reduce operating costs by some
£250,000 per year and improve the field's oil recovery. The work is fully in
keeping with current environmental standards and practices and demonstrates
UKOG's responsible attitude towards ensuring the area beneath the site remains
as well protected as possible."

 

Qualified Person's Statement

 

Matt Cartwright, UKOG's Commercial Director, who has 39 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                            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.

 

 

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