REG - UK Oil & Gas PLC - Pinarova-1 Testing Operations Update

UK Oil & GasAnnouncement

02/02/2024 14:15

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RNS Number : 9127B  UK Oil & Gas PLC  02 February 2024

UK Oil & Gas PLC

("UKOG" or the "Company")

 

Pinarova-1 Testing Operations Update

 

UK Oil & Gas plc (London AIM: UKOG) announces that, following successful
reperforating and extensive swab testing at Pinarova-1 by operator Aladdin
Middle East, we have mutually concluded that, in the absence of commercial
rates of hydrocarbons, no further testing will take place.

 

Given the prior recovery of mobile light 42° API oil from the mud pit (RNS of
22(nd) September 2023), oil shows, strong oil odours at surface over a
12-hour drilling period and the associated shot-hole oil seep with
geochemically identical oil, we are disappointed that Pinarova-1 has not met
our joint expectations.

 

However, we believe that the drilling and testing results indicate Pinarova
likely penetrated the southernmost feather edge of a small oil accumulation
within the Germik/Hoya sequence, stretching updip towards Kezer-1. Preliminary
analysis of all data indicates that the source of these shallow light oils is
most likely from spill or seepage from an underlying deeper light oil pool in
the Kezer-Pinarova area. We will continue to investigate the commercial
potential of both these future targets.

 

The testing operations involved successfully detonating 7-inch perforating
guns at 12 shots per foot over a 40 ft section of Germik/Hoya sequence, a
comprehensive injectivity and swab testing programme, followed by an
acidisation operation and further swab testing.

 

Results confirmed full communication with the reservoir via the new 7-inch
perforations, justifying the Company's interpretation that the original
4.5-inch guns did not fully access the Hoya/Germik reservoir. Costs for the
operations were kept to a minimum throughout.

 

The larger guns, supplied by PSI, were used following normal site rig up and
necessary safety and environmental checks. UKOG's own site representative was
on hand to monitor quality control and safe operations.

 

UKOG holds a 50% non-operated interest in Pinarova-1 and the surrounding 305
km² Resan licence.

 

Chief Executive Stephen Sanderson commented:

 

"Exploration drilling and testing is never guaranteed to deliver success, even
if all prior indicators are positive. This is certainly the case for
Pinarova-1, and we are disappointed by the lack of commercial flow. We will
continue to analyse all data and explore both the potential updip shallow
Germik/Hoya accumulation and the likely more significant deeper pool
objective, the most probable source of the observed shallow hydrocarbons and
shot-hole oil seep. With operator Aladdin's cooperation, costs were
fortunately kept to a minimum and it adds to our bank of data about the Resan
licence for the future."

 

Qualified Person's Statement

 

Matt Cartwright, UKOG's Commercial Director, who has 40 years of relevant
experience in the global petroleum 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

 °API       a measure of the density of crude oil, as defined by the American Petroleum
            Institute
 oil seep   a natural flow of crude oil at or close to the earth's surface whose origin is
            from a petroleum accumulation or oil source rock at depth.
 shot-hole  a shallow borehole in which a small amount of explosive is detonated in order
            to generate a seismic signal

 

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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