REG - UK Oil & Gas PLC - Significant Horndean Production Increase

UK Oil & GasAnnouncement

10/02/2025 07:00

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RNS Number : 4262W  UK Oil & Gas PLC  10 February 2025

UK Oil & Gas PLC

("UKOG" or the "Company")

 

Significant Horndean Production Increase

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that a workover
campaign, culminating in the deeper seating of a downhole pump in Q4 2024, has
achieved a significant increase in the Horndean field's production and
resultant revenues (UKOG 10% interest). The results and improved 2025 budget
forecasts are summarised below:

·    January 2025 full field production averaged 200 barrels of oil per
day ("bopd"), 60% higher than the 125 bopd achieved in January 2024.

·    Based upon the improved post-workover performance, the operator, Star
Energy,  now forecasts 2025 annual field production to be 61,195 barrels
("bbl") compared to 49,402 bbl produced in 2024, a material 24% increase if
achieved. The forecast assumes an average daily rate of 168 bopd.

·    As January 2025's 200 bopd average is already 19% above the 168 bopd
2025 annual field production forecast, further potential exists for increased
2025 production over the forecast.

·    2024 total field production also outperformed the budget forecast by
11%, achieving 49,402 bbl versus the forecast of 44,379 bbl.

·    The recent workovers, combined with the prior installation of new
electric pumps in 2023, have further increased the trend of improved field
performance and low decline seen in 2023's production figures, which showed a
22% increase in daily production versus 2022 (see RNS 28(th) June 2024).

Stephen Sanderson UKOG's Chief Executive commented:

"We are delighted with the clear success of the workover programme and the
materially increased production rates obtained. Horndean's production rate,
decline and revenues continue to exceed expectations, further underscoring its
value to our portfolio."

 

For further information, please contact:

UK Oil & Gas Plc

Stephen Sanderson / Kris Bone
                                                               Tel:
01483 941493

 

Zeus (Nominated Adviser and
Broker)

James Joyce / James Bavister / Andrew de Andrade
                                Tel: 0203 829 5000

 

CMC Markets (Joint Broker)

Douglas
Crippen
    Tel:  0203 003 8632

 

Communications

Brian Alexander
 
                     Tel: 01483 941493

 

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.

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