REG - UK Oil & Gas PLC - Turkey: Pinarova-1 oil shows & testing

UK Oil & GasAnnouncement

21/04/2023 08:45

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RNS Number : 0475X  UK Oil & Gas PLC  21 April 2023

UK Oil & Gas PLC

("UKOG" or the "Company")

 

Turkey: Pinarova-1 oil shows & testing

 

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that after
drilling ahead within the target Eocene Hoya limestone sequence, Pinarova-1
encountered oil shows in drill cuttings from 358 to 400 metres drilled depth.
The onset of oil shows also corresponds with observed drilling fluid losses,
potentially indicating permeability development within the Hoya reservoir.
Given these encouraging observations, it has been decided to conduct open hole
swabbed flow testing over the zone between 293 and 400 metres drilled depth.
Preparations for testing operations are underway.

 

Following testing operations, which are expected to run over the coming
weekend, drilling is planned to continue through the underlying zone lying
coincident with the uppermost and strongest seismic amplitude anomaly observed
within Pinarova's core. As per the Company's RNS of 11th January 2023, the
seismic anomaly may indicate the presence of moveable hydrocarbons and or good
Hoya reservoir development and is therefore a key drilling and testing
objective.

 

Pinarova-1, located 6 km north of the Basur-1 oil discovery, is designed to
test a working hypothesis, supported by well and seismic data, that the active
41.7˚ API light oil seep found last summer in a seismic shot hole above the
Pinarova structure, is directly fed by and connected to an underlying light
oil accumulation of some 9 km² areal extent within the Hoya limestones, lying
between c. 300-645 metres below surface.

 

It should be noted that the end of Ramadan, Eid al Fitr, occurs tonight,
Friday 21st April 2023, and may affect operational timings over the coming
weekend.

 

UKOG holds a 50% non-operated interest in Pinarova-1 and the surrounding 305
km² Resan licence, which also includes the as yet undeveloped Basur-1 light
oil discovery.

 

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/James Bavister          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
 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
 drill cuttings             Small er chips of rock of a few millimetres or smaller diameter that are
                            produced from the cutting and grinding action of the drill bit and which are
                            brought to surface within the drilling fluid or mud.
 limestone                  a sedimentary rock predominantly composed of calcite (a crystalline mineral
                            form of calcium carbonate) of organic, chemical or detrital origin.
 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.
 oil shows                  The presence of visible moveable oil on drill cuttings and or within the
                            drilling fluid seen at surface
 seismic amplitude          a measure of the seismic reflection strength at a given subsurface interface
 seismic amplitude anomaly  a seismic amplitude that is either higher or lower than the general amplitudes
                            seen elsewhere at the same geological interface indicating a possible lateral
                            change in rock properties resulting from a possible change in rock fluid
                            content i.e., the presence of hydrocarbons and or lithology and or porosity.
 shot hole                  a shallow borehole in which a small amount of explosive is detonated in order
                            to generate a seismic signal
 swabbing, swab test        a basic testing procedure using an array of rubber swabbing cups attached to
                            heavy wireline within production tubing. When the swabbing cups are moved
                            repeatedly upwards this creates a suction or basic pumping effect in the
                            tubing which can reduce/unload the head of fluids adjacent to the reservoir
                            which can induce inflow from the formation into the well. Swabbing was used at
                            UKOG's Horse Hill field in 2016 to induce flow from both the Kimmeridge and
                            Portland zones.

 

 

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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