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

UK Oil & GasAnnouncement

15/04/2025 07:02

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RNS Number : 9899E  UK Oil & Gas PLC  15 April 2025

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.

 

UK Oil & Gas PLC

("UKOG" or the "Company")

 

Significant Horndean Reserves Increase

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that, further
to the Company's RNS of 10 February 2025, a new Reserves Report ("Report"),
carried out for the Horndean field operator (Star Energy Group plc), has
assessed that the field's remaining reserves have increased by up to 62%
compared to the same period one year ago. UKOG's wholly owned subsidiary UKOG
GB holds a 10% non-operated interest in Horndean.

The Report's assessed gross reserves as of 31(st) December 2024 and the
reserve increase versus 31(st) December 2023, are summarised below:

·    A 62% increase in proven (1P) reserves to 1.5 million barrels
("mmbbl", UKOG net 0.150 mmbbl)

·    A 55% increase in proven plus probable (2P) reserves to 1.65 mmbbl
(UKOG net 0.165 mmbbl)

·    A 53% increase in proven plus probable plus possible (3P) reserves to
1.82 mmbbl (UKOG net 0.182 mmbbl)

·    The assessed 2P reserve increase equates to 12 times the 2024 field
production of 49,402 bbl.

The increase in reserves is a direct result of increased field performance via
the combination of recent well workovers and the prior installation of new
electric pumps in mid-2023 (see RNS of 28(th) June 2024).

The Report was prepared in accordance with the Petroleum Resources Management
System approved by the Society of Petroleum Engineers.

Horndean reserves and contingent resources as of 31(st) December 2024 are
summarised in tables 1 and 2 below:

Table 1: Horndean Reserves as of 31/12/2024

 Horndean                 Full Field (100%)*         UKOG Net (10%)
 PRMS Reserves Category   1P       2P       3P       1P     2P     3P
 Recoverable oil (mmbbl)  1.50     1.65     1.82     0.15   0.17   0.18

 

Table 2: Horndean Contingent Resources as of 31/12/2024

 

 Horndean                           Full Field (100%)*         UKOG Net (10%)
 PRMS Contingent Resource Category  1C       2C       3C       1C     2C     3C
 Recoverable oil (mmbbl)            0.18     0.74     1.23     0.02   0.07   0.12

Note:* As assessed for the operator Star Energy by DeGolyer & MacNaughton

Stephen Sanderson UKOG's Chief Executive commented:

"We are delighted that the Horndean field's materially increased performance
has now been fully reflected in an equally material increase in assessed
reserves. The resultant increased asset value, even at current Brent prices,
is most welcome."

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 / 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

 

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
              bbl              Barrel of oil
 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
              Reserves Report  A Petroleum Resources report prepared by an independent 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 Report 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.
              mmbbl            Million barrels of oil

 

 

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