Back to all announcements

DJ UK Oil & Gas Investments PLC Update - Broadford Bridge-1

TIDMUKOG

RNS Number : 5670Q

UK Oil & Gas Investments PLC

13 September 2017

UK Oil & Gas Investments PLC

("UKOG" or the "Company")

Regulatory Update,

Planning Extension Approved, Extended Flow Testing Underway

Broadford Bridge-1 and 1z Exploration Well, Weald Basin, UK

UK Oil & Gas Investments PLC (London AIM and ISDX: UKOG) is pleased to announce that West Sussex County Council's Planning Committee have unanimously approved a one-year extension to the existing planning permission covering its 100% owned BB-1 and 1z exploration well, located in licence PEDL234. The extension, which will expire in September 2018, enables the company to complete the full 14-week extended flow test programme as originally permitted and planned.

In addition, the Oil and Gas Authority's flow test consent has been similarly extended to December 2017. Well testing equipment is now fully assembled and testing operations are underway.

As previously stated, the extended flow test programme is specifically designed to gather further supportive evidence that the Kimmeridge contains mobile light oil within an extensive continuous oil deposit, which can flow to surface at commercial rates and in commercial volumes. Flow test results will be reported in due course.

About BB-1

BB-1 and BB-1z, an exploration step-out, is located south of Billingshurst, West Sussex, within the 300 km(2) PEDL234 licence, in which the Company has a 100% interest via its ownership of the licence's operator, Kimmeridge Oil & Gas Limited ("KOGL").

As previously reported, in the Company's opinion, the multiple positive indications of mobile light oil observed throughout the entire naturally fractured KL0 to KL5 target reservoir sections are supportive that a significant continuous oil deposit, with a vertical extent of around 1,400 ft has been demonstrated by BB-1 and 1z. In 2016, two units of this zone, KL4 and KL3, flowed oil at a stable aggregate rate of 1,365 barrels per day in 2016 in the Horse Hill-1 discovery near Gatwick Airport.

This continuous oil deposit therefore likely underlies the entire PEDL234 licence and a significant area of the wider Weald Basin, including the Horse Hill-1 Kimmeridge oil discovery some 27 km to the north east. The Company has the largest licence holding in the Weald Basin and within the prospective area of the Kimmeridge play.

Stephen Sanderson, UKOG's Executive Chairman, commented:

"West Sussex's unanimous approval of the extension is further recognition of the Company's operational competence, sound environmental practices and positive engagement with all stakeholders. I look forward to a successful flow test outcome."

Qualified Person's Statement

Stephen Sanderson, UKOG's Executive Chairman, who has over 35 years of relevant experience in the oil industry, has approved the information contained in this announcement. Mr Sanderson is a Fellow of the Geological Society of London and is an active member of the American Association of Petroleum Geologists.

For further information, please contact:

UK Oil & Gas Investments PLC

   Stephen Sanderson / Kiran Morzaria                                     Tel: 01483 243450 

WH Ireland (Nominated Adviser and Broker)

   James Joyce / James Bavister                                                   Tel: 020 7220 1666 

Cenkos Securities PLC (Joint Broker)

   Nick Tulloch / Neil McDonald                                                   Tel: 0131 220 6939 

BPA Media/Square 1 Consulting (Public Relations)

   Brian Alexander / David Bick                                                    Tel: 01483 243450 

Glossary:

 
 continuous      a petroleum accumulation that is 
  oil deposit     pervasive throughout a large area, 
  or resource     which is not significantly affected 
  deposit         by hydrodynamic influences (i.e. 
                  the buoyancy of oil in water) and 
                  is not trapped by structural or 
                  stratigraphic geological conditions. 
                  The deposit, in contrast to conventional 
                  accumulations, has therefore not 
                  accumulated by the migration of 
                  petroleum over medium to long distances. 
                  The petroleum in such deposits 
                  is found within, or immediately 
                  adjacent or close to, the pore 
                  spaces where the petroleum is generated, 
                  i.e. those pore spaces lying within 
                  petroleum source rocks containing 
                  organic rich compounds (kerogen) 
                  that, when heated over geological 
                  time, transform into petroleum. 
                  These accumulations are generally 
                  associated with organic-rich shales 
                  such as the Kimmeridge Clay Formation. 
                  Such accumulations do not generally 
                  contain significant volumes of 
                  free, mobile formation water and 
                  therefore have no observable hydrocarbon-water 
                  contacts. The extent of the accumulation 
                  is generally defined by the limit 
                  of where burial depths have been 
                  sufficient to transform organic 
                  matter within the petroleum source 
                  rock unit into petroleum 
--------------  ------------------------------------------------ 
 discovery       a discovery is 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 
--------------  ------------------------------------------------ 
 limestone       a sedimentary rock predominantly 
                  composed of calcite (a crystalline 
                  mineral form of calcium carbonate) 
                  of organic, chemical or detrital 
                  origin. Minor amounts of dolomite, 
                  chert and clay are common in limestones. 
                  Chalk is a form of fine-grained 
                  limestone 
--------------  ------------------------------------------------ 
 naturally       a fractured reservoir contains 
  fractured       open and usually connected cracks 
  reservoir       or fissures within the rock matrix; 
                  fractures can enhance permeability 
                  of rocks greatly by connecting 
                  pore-spaces together; naturally 
                  fractured reservoirs have been 
                  created over geological time by 
                  nature, not man-made via hydraulic 
                  fracturing 
--------------  ------------------------------------------------ 
 step-out well   a well specifically designed to 
                  determine the lateral extent of 
                  a discovered hydrocarbon accumulation 
                  or play. 
--------------  ------------------------------------------------ 
 

UKOG Licence Interests

The Company has interests in the following ten UK licences:

 
Asset              Licence        UKOG's       Licence Holder      Operator      Area (km(2) )          Status 
                                 Interest 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
                                                 UKOG (GB)       IGas Energy                        Field in stable 
Avington (1)       PEDL070          5%            Limited            Plc             18.3             production 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
Baxters Copse      PEDL233         50%           UKOG Weald      IGas Energy         89.6        Appraisal/development 
(2)                                               Limited            Plc                         well planned; licence 
                                                                                                   extended to 2018 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
                                               Kimmeridge Oil   Kimmeridge Oil 
Broadford Bridge                               & Gas Limited    & Gas Limited                      BB-1 flow testing 
 (3)               PEDL234         100%             (4)              (4)             300.0             underway 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
Holmwood (3)       PEDL143         30%              UKOG         Europa Oil &        91.8             Holmwood-1 
                                                                Gas (Holdings)                     exploration well 
                                                                     plc                          planned in 2017/18 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
                                                 UKOG (GB)       IGas Energy                        Field in stable 
Horndean (1)        PL211          10%            Limited            Plc             27.3             production 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
Horse Hill (5)     PEDL137       32.435%         Horse Hill       Horse Hill         99.3         Submitted planning 
                                                Developments     Developments                    application for long 
                                                    Ltd              Ltd                         term production tests 
                                                                                                  and drilling of two 

(MORE TO FOLLOW) Dow Jones Newswires

September 13, 2017 02:01 ET (06:01 GMT)

DJ UK Oil & Gas Investments PLC Update - Broadford -2-

                                                                                                         wells 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
                                                 Horse Hill       Horse Hill 
                                                Developments     Developments 
Horse Hill (5)     PEDL246       32.435%            Ltd              Ltd             43.6              As above 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
Isle of Wight                                   UKOG Solent      UKOG Solent                      Preparing drilling 
 (Offshore) (3)     P1916          100%           Limited          Limited           46.7         planning submission 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
Isle of Wight 
 (Onshore) (2,                                                                                    Preparing drilling 
 3)                PEDL331         65%              UKOG             TBA             200.0        planning submission 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
Markwells Wood     PEDL126         100%          UKOG (GB)        UKOG (GB)          11.2         Submitted planning 
 (2)                                              Limited          Limited                          application for 
                                                                                                  appraisal and field 
                                                                                                      development 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
 

Notes:

1. Oil field currently in production.

2. Oil discovery pending development and/or appraisal drilling.

3. Exploration asset with drillable prospects and leads. Contains the extension of the Godley Bridge Portland gas discovery and the site of the Broadford Bridge-1 and 1z well.

4. UKOG has a 100% interest in Kimmeridge Oil & Gas Limited, which has a 100% interest in PEDL234.

5. Oil discovery with recently completed flow testing.

6. UKOG has a direct 49.9% interest in HHDL, which has a 65% interest in PEDL137 and PEDL246.

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

This information is provided by RNS

The company news service from the London Stock Exchange

END

DRLZMGMLLZRGNZM

(END) Dow Jones Newswires

September 13, 2017 02:01 ET (06:01 GMT)