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

UK Oil & GasAnnouncement

03/05/2023 07:00

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RNS Number : 1899Y  UK Oil & Gas PLC  03 May 2023

UK Oil & Gas PLC

("UKOG" or the "Company")

 

Turkey: Pinarova-1 Update

 

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that Pinarova-1
has reached its final depth of 600 metres below surface. Electric logs over
both the 9⅝ inch cased hole and  8½ inch open hole section have been
acquired and the delivery of a final log interpretation is awaited.

 

Plans are now being made to run a conventional selective cased hole flow test
operation. The proposed uppermost zone, from approximately 255-285 metres,
corresponds to a 12-hour period of strong oil odour at surface and the
recovery of light c. 38˚ API oil within fluids returned to surface from the
same depth. The sourcing of suitable perforating guns to run in the 9⅝ inch
casing is currently underway.

 

A sample of the oil recovered from Pinarova (as detailed above) along with
samples of the 41.7˚ API oil recovered from the active seismic shot-hole seep
(see RNS of 11th January 2023 and 30th June 2022) and 43˚ API oil from the
nearby East Sadak field, have now also been dispatched to the UK for detailed
geochemical study.

 

The oil study's primary objectives are to determine; a. whether the Pinarova
oil sample matches the oil from the shot-hole seep, b. whether it's derived
from the same general Upper Jurassic source as E. Sadak or c. it has another
origin from  shallower Cretaceous origin. The geochemical results will assist
the Company's  current investigations into the possibility that a deeper
light oil accumulation may also exist below the Pinarova area within
Cretaceous limestones.

 

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
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, which
lie between c. 300-645 metres below surface.

 

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 chips of rock of a few millimetres or smaller diameter that are produced
                            from the cutting and grinding action of the drill bit against the rock
                            formation 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 pay                    a reservoir or portion of a reservoir that contains economically producible
                            hydrocarbons. The term derives from the fact that it is capable of "paying" an
                            income.
 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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