REG - UK Oil & Gas PLC - Turkey: Basur-Resan seismic processing completed

UK Oil & GasAnnouncement

20/04/2022 07:00

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RNS Number : 6570I  UK Oil & Gas PLC  20 April 2022

UK Oil & Gas PLC

("UKOG" or the "Company")

 

Turkey: Basur-Resan seismic processing completed

 

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that seismic
processing of the 55 km of new Basur-Resan 2D seismic has been completed and
has been received from Abu Dhabi based BGP. Following an initial review, the
Company believes the new data is an improvement on the prior 1982-92 seismic
data, further confirming the prospectivity of the Basur-Resan hydrocarbon
accumulation. As originally planned, the new data will help facilitate the
correct placement and design of the future Basur-3 sidetrack ("B-3S") and
Resan-6 ("R-6") appraisal wells.

The new seismic was pre-stack depth migrated ("PSDM"), a significant technical
step forwards from the original seismic data used to locate the Company's 2021
Basur-3 ("B-3") appraisal well. PSDM is a key modern process which correctly
images and positions faults and geological structures in the depth domain
along the plane of the 2D seismic line.

Implications for Basur-Resan hydrocarbon pool

 

New seismic line AME-21-8, the first seismic line running northwest to
southeast along the 'strike' or geological axis of the Basur-Resan anticline
and passing through key Basur and Resan wells, indicates, in the Company's
view, that both Basur and Resan are part of the same 60 km² anticline and
could thus potentially contain one common hydrocarbon pool. Both the B-1
discovery and Resan-5 wells which fall on the new seismic line, some 9 km
apart, are reported to have recovered oil to surface from similar depths
within the Garzan to Mardin target section, albeit historic 1950s-60s data
quality and documentation is poor. The proposed B-3S and R-6 wells will test
whether this interpretation is correct.

Implications for B-3 well

 

UKOG's preliminary interpretation of new line AME-21-3, which runs
northeast-southwest directly over the original Basur-1 ("B-1") discovery well
and the B-3/B-3S well trajectories, reveals that the Company's B-3 well,
designed to test an area interpreted to be updip of the B-1 discovery on the
upthrown side of a bounding fault, actually penetrated the deeper, downthrown
area to the north of the bounding fault. PSDM demonstrates the bounding fault
to lie around 0.6 km further southwest of the position seen on the original
pre-drill 1982-92 seismic data. The integrity of the updip B-1 pool however
remains intact, albeit with a minor reduction in overall gross rock volume due
to the more southerly position of the bounding fault.

 

The new PSDM thus explains why B-3 did not reach the objective Garzan to
Mardin sections, as these are now shown to lie below the base of the well,
deeper than originally prognosed utilising the old 1982-92 seismic and lying
below the lowest known hydrocarbons in B-1. As previously reported on 31(st)
July 2021, deteriorating hole conditions following fishing operations for a
stuck downhole assembly prevented further B-3 operations. Consequently, as no
electric logs were obtained, B-3's precise geological position within the
Lower Germav formation overlying the Garzan remains uncertain.

 

The Company's position at the time was to drill a mechanical sidetrack, B-3S,
to intersect the Top Garzan as close to the B-1 discovery location as soon as
possible; however, a time out was requested by the operator to complete
seismic acquisition and processing before any drilling resumption.

 

Implications for future B-3S well

 

With the new seismic giving a more precise location of the bounding fault
north of B-1, it is now apparent that to successfully enter the upthrown side
of the fault containing the B-1 oil discovery, B-3S will require a steeper
angle and longer lateral deviation than previously envisaged. In this respect
and to reduce B-3S drilling uncertainty, the current technical plan is to
drill B-3S to intersect the known subsurface positions of the target
objectives at or immediately adjacent to those penetrated by the B-1
discovery, proven to lie within the Basur hydrocarbon pool's upthrown
fault-block. This was originally UKOG's preferred position prior to the B-3
well.

 

Next steps

 

Geological mapping utilising the new PSDM data is well advanced and revised
drilling prognoses are in preparation. These will be used to fine tune
operational planning for B-3S and for a simple vertical R-6 well, designed to
test the culmination of the Basur-Resan anticline (i.e., where the objective
section is closest to the surface). A rig contractor has been identified.
Given the new seismic indicates B-3S requires a longer and higher angle
trajectory than previously envisaged, the joint venture  is considering the
merits and potential cost savings of drilling the simpler R-6 before the more
complex B-3S. The Company awaits the operator's drilling cost comparisons,
expected timings and final recommendations in this respect before confirming
its position.

The Basur-Resan anticline containing the Basur-1 oil discovery is located
within the surrounding 305 km² Resan M47-b1, b2 licence, in which UKOG's
wholly owned subsidiary, UKOG Turkey Ltd, holds a 50% non-operated interest.

Stephen Sanderson, UKOG's Chief Executive commented:

 

"The new seismic is an improvement on the prior 1982-92 data and for the first
time links the original Basur-1 discovery with the Resan wells at the
southeastern culmination of the anticline, providing encouragement that a
single hydrocarbon accumulation could be present over the entire 60 km²
Basur-Resan anticline. As originally envisaged, the new data will also help
facilitate the correct placement and design of the future planned B-3S and R-6
appraisal wells, designed to determine the future commercial viability of
Basur-Resan."

 

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.

 

Glossary

 anticline                         a domed shape geological structure, often elongate and asymmetrical as is the
                                   case at Basur-Resan. Often the anticline's geological expression can be seen
                                   at surface where it is expressed as a surface anticline. This is the case at
                                   Basur-Resan.
 discovery                         a petroleum accumulation for which one or several exploratory wells have
                                   established through testing, sampling and/or logging the existence of a
                                   significant quantity of potentially moveable hydrocarbons.
 hydrocarbon pool                  a subsurface hydrocarbon accumulation existing within a single geological
                                   reservoir unit.
 pre-stack depth migration (PSDM)  an advanced  step in modern seismic processing which requires extensive
                                   computer CPU power to transform seismic data recorded in the time domain into
                                   a depth domain data set. PSDM considers the vertical and lateral seismic
                                   velocity variations present in the subsurface to correctly position
                                   reflections from geological horizons, faults and structures in space. In the
                                   case of 2D seismic, the PSDM's positioning of seismic events is confined to
                                   the 2D depth domain space along the vertical plane of the seismic line.
 sidetrack                         a secondary wellbore drilled away from the original hole. The sidetrack
                                   utilises the existing well's casing down to the point where the sidetrack must
                                   commence in order to reach the target.

 

For further information, please contact:

   UK Oil & Gas PLC
   Stephen Sanderson / Matt Gormley / 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 by the Company to
constitute inside information under the Market Abuse Regulation (EU) No.
596/2014

 

 

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