REG - UK Oil & Gas PLC - Turkey: Pinarova-1 well update

UK Oil & GasAnnouncement

01/03/2023 07:01

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RNS Number : 3988R  UK Oil & Gas PLC  01 March 2023

UK Oil & Gas PLC

("UKOG" or the "Company")

 

Turkey: Pinarova-1 well update

 

Highlights:

 

·    Drilling rig secured for new Pinarova-1 shallow oil exploration well
(UKOG 50% interest), designed to test shallow Eocene Hoya light oil prospect,
of some 9 km² areal extent, 300-645m below surface. Pinarova lies beneath an
active light oil seep found last summer in a seismic shot hole, 6 km north of
the Company's Basur-1 oil discovery.

 

·    Site construction now expected to start in 7-10 days with an
estimated duration of around 14-21 days, given good weather.

 

·    Drilling to a total depth of around 500-550m to directly follow site
completion, currently expected around end March to early April 2023. Dependent
on outcomes, expected drilling campaign duration up to 28 days.

 

·    The Company is fully funded to cover its share of the expected $0.4
million gross dry hole and $0.63 gross success case (tested and completed as
an oil producer) costs.

 

 

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that the Resan
JV (UKOG 50% non-operated interest) having secured a suitable small rig to
drill the new Pinarova-1 shallow oil exploration well, now expects to commence
site construction within the next 7-10 days. Site construction is expected to
take approximately 14-21 days and, consequently, given no weather-related
construction delays, drilling to a total depth of around 500-550m is expected
to commence directly after site completion towards the end of March to early
April 2023. The Pinarova-1 campaign is expected to take up to 28 days to
deliver a well completed for future oil production.

As per the Company's 11(th) January 2023 release, 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 (see RNS
of 30 June 2022), is directly fed by and connected to an underlying light oil
accumulation of some 9 km² areal extent within Eocene Hoya group limestones,
300-645m below surface.

The presence of movable oil within Pinarova is also indicated by results of
the 2018 Kezer-1 shallow geothermal well, located near the apex of the
Pinarova geological feature. Kezer-1 reported strong oil shows throughout the
Hoya and is reported to have flowed heavily oil-cut fluids to surface on a
short open-hole geothermal test.

The Company and its joint partner Aladdin Middle East consider Pinarova to
offer similar potential success case outcomes to a Basur-4 appraisal well, but
at much lower drilling and development costs and with a shorter time to
execution and delivery.

Estimated gross Pinarova-1 drilling costs range from $0.4 million dry hole to
$0.63 million tested and completed as a pumped oil producer. The Company has
ample funds to cover its share of the planned drilling and testing campaign.

 

Stephen Sanderson, Chief Executive, commented:

 

"Pinarova's prospectivity, potential success case oil volumes and modest
drilling costs make it an attractive stand-alone project that could, in the
success case, deliver oil production in H1 2023. Given the positive shallow
oil seep evidence plus the good light oil shows encountered within Pinarova by
the Kezer-1 geothermal well, the new well will seek to establish if that oil
is present in commercially viable saturations and volumes that can be pumped
to surface. We look forward to the impending start of site construction and
subsequent drilling directly upon its completion."

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 / James Bavister / Andrew de Andrade          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
 geothermal well  a well designed to harness geothermal heat within the earth by transferring
                  heat from hot formation water at depth to surface via a borehole. The heat
                  transfer to surface can be via direct circulation of formation water to
                  surface (circulating loop) or via means of a heat pump within  the borehole
                  (closed loop).
 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.
 shot hole        a shallow borehole in which a small amount of explosive is detonated in order
                  to generate a seismic signal

 

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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