REG - UK Oil & Gas PLC - Turkey: Pinarova-1 Testing Update

UK Oil & GasAnnouncement

22/09/2023 07:00

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RNS Number : 2890N  UK Oil & Gas PLC  22 September 2023

UK Oil & Gas PLC

("UKOG" or the "Company")

 

Turkey: Pinarova-1 Testing Update

 

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that following
the temporary suspension of Pinarova-1 testing operations, larger and more
powerful 7-inch perforating guns, capable of fully penetrating Pinarova-1's
9⅝-inch casing and cement and that are available for import into Turkey,
have now finally been sourced. The Company is working closely with the
Pinarova-1 operator, Aladdin Middle East, to facilitate delivery to the site
as soon as possible so as testing operations can recommence.

 

As per the Company's 23(rd) May 2023 RNS, downhole pressure gauge data showed
that the original 4.5-inch perforating guns, the only size guns available
in-country, did not establish direct contact with the formation. Therefore,
tests to date did not assess the potential of the zones associated with the 12
hours of strong crude oil odour and oil at surface as previously reported on
3(rd) May 2023.

 

Additionally, new geochemical analyses undertaken by UK/Norway based APT Ltd
demonstrate  that both the Pinarova mud-pit oil sample and oil samples from
the nearby shallow seismic shot-hole seep are a geochemical close match and
most likely originate from the same Mesozoic age oil source rock, located
beneath the general area of the shallow Pinarova structure.

 

With this in mind, should further testing be positive, consideration is being
given to the acquisition of a small 3D seismic programme to identify a
possible deeper oil pool, seepage/spill from which being the most likely
primary source of both the seep and Pinarova oils.

 

Pinarova-1, located 6 km north of the Basur-1 oil discovery, was designed to
test a working hypothesis, supported by well and seismic data, that the
active 42˚ 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 lying within the Germik and/or Hoya
limestones.

 

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 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 / 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
 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
 shot hole    a shallow borehole in which a small amount of explosive is detonated in order
              to generate a seismic signal
 source rock  a sedimentary rock, usually a claystone, mudstone or shale, which contains
              fossil organic matter known as kerogen derived from the decomposition of
              fossil phytoplankton, algae, bacteria and occasionally plant material. When
              the kerogen is subjected to increasing temperature and pressure through burial
              over geological time, it is transformed into hydrocarbons.

 

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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