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DJ UK Oil & Gas Investments PLC Planning Application for Appraisal Programme


RNS Number : 6572M

UK Oil & Gas Investments PLC

17 October 2016

17 October 2016

UK Oil & Gas Investments PLC

("UKOG" or the "Company")

Horse Hill-1 Oil Discovery, Weald Basin, UK

Planning Application for Significant Appraisal Programme, UK Weald Basin

UK Oil & Gas Investments PLC (LSE AIM/ISDX: UKOG) announces that Horse Hill Developments Ltd ("HHDL") has informed the Company that a planning application has been submitted to Surrey County Council seeking permission to conduct further significant appraisal testing and drilling at the Horse Hill-1 ("HH-1") oil discovery, located in Licence PEDL137, close to Gatwick Airport. The HH-1 oil discovery achieved an aggregate stabilised flow rate of 1688 bopd from two Kimmeridge limestones plus the overlying Portland sandstone. The Company holds a 31.2% interest in PEDL137.

Subject to the required regulatory approvals, the first phase of the proposed development is planned to consist of the extended production testing of four zones, designed to confirm the commerciality of the discovery, and to examine a previously untested Kimmeridge limestone. The planning application also seeks permission for a two-well drilling phase, which contingent upon successful testing, will further appraise the extent of the oil accumulations and the field's production capabilities. The proposed drilling phase includes plans for a deviated sidetrack, HH-1z, to be drilled from the existing HH-1 borehole, together with a new well, Horse Hill-2 ("HH-2"). On completion of drilling, both the HH-1z and HH-2 are planned to be long-term production tested.

In order to minimise impact to the locality, feedback from both a public consultation and engagement process, undertaken in July, and subsequent meetings with local residents' representatives, was incorporated into the envisaged development design and planning application. The normal local planning authority cycle for an application not requiring an Environmental Impact Assessment such as at Horse Hill, takes approximately 13 weeks.

HHDL and the Company's Interest in the Licence

HHDL is a special purpose vehicle, which owns a 65% working interest and operatorship of the Licence. UKOG now owns a 48% beneficial shareholding in HHDL, which equates to a 31.2% net working interest in the Licences. The remaining 35% interest in the Licences is held by Magellan Petroleum (UK) Limited.

Stephen Sanderson, UKOG's Executive Chairman, commented:

"This planning application, together with our recent Markwells Wood appraisal and development planning application, is firmly designed to move these assets into near term oil production and the monetisation of our core recoverable resources. It is also one of the next key steps in furthering our industry leading knowledge of the Kimmeridge limestone play that lies beneath our extensive acreage holding in the Weald. We look forward to further engaging with stakeholders and to a successful planning 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 / Jason Berry Tel: 020 7440 0640

WH Ireland (Nominated Adviser and Broker)

James Joyce / James Bavister Tel: 020 7220 1666

Square 1 Consulting (Public Relations)

David Bick / Brian Alexander Tel: 020 7929 5599


 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 
--------------------  ------------------------------------------ 
 extended production   a flow test, or extended well test, 
  test                  as per the permission granted by 
                        the Oil and Gas Authority, with 
                        an aggregate flow period duration 
                        over all zones of greater than 96 
                        hours and up to 90 days maximum 
--------------------  ------------------------------------------ 
 sidetrack             re-entry of a well from the well's 
                        surface location with drilling equipment 
                        for the purpose of deviating from 
                        the existing well bore to achieve 
                        production or well data from an 
                        alternative zone or bottom hole 
                        location, or to remedy an engineering 
                        problem encountered in the existing 
                        well bore. 
--------------------  ------------------------------------------ 

Notes to Editors:

UKOG Licence Interests

The Company has interests in the following UK licences:

Asset          Licence     UKOG's          Licence              Operator         Area              Status 
                           Interest         Holder                               (km(2) 
------------  ---------  ----------  -------------------  -------------------  --------  -------------------------- 
Avington                                  UKOG (GB)           IGas Energy                      Field in stable 
 (1)           PEDL070       5%             Limited                Plc           18.3             production 
------------  ---------  ----------  -------------------  -------------------  --------  -------------------------- 
                                                                                           of appraisal/development 
Baxters                                                                                         well. Licence 
 Copse                                    UKOG Weald          IGas Energy                        extended to 
 (2)           PEDL233       50%            Limited                Plc           89.6                2018 
------------  ---------  ----------  -------------------  -------------------  --------  -------------------------- 
                                          Kimmeridge           Kimmeridge                         BB-1 well 
Broadford                                    Oil &                Oil &                           permitted, 
 Bridge                                   Gas Limited          Gas Limited                      expected 2017 
 (3)           PEDL234      100%              (4)                  (4)           300.0            spud date. 
------------  ---------  ----------  -------------------  -------------------  --------  -------------------------- 
                                                                                                EA permission 
                                            Angus                Angus                            requested 
Brockham                                    Energy               Energy                          for drilling 
 (1)            PL235       3.3%              (6)                  (6)            8.9         of B-4x sidetrack 
------------  ---------  ----------  -------------------  -------------------  --------  -------------------------- 
                                                                 Europa                          Holmwood-1 
                                                                  Oil &                          exploration 
Holmwood                                                     Gas (Holdings)                       well spud 
 (3)           PEDL143       30%             UKOG                  plc           91.8           expected 2017 
------------  ---------  ----------  -------------------  -------------------  --------  -------------------------- 
Horndean                                  UKOG (GB)           IGas Energy                      Field in stable 
 (1)            PL211        10%            Limited                Plc           27.3            production. 
------------  ---------  ----------  -------------------  -------------------  --------  -------------------------- 
                                                                                             planning application 
                                                                                                for long term 
Horse                                       Horse                Horse                            production 
 Hill                                  Hill Developments    Hill Developments                     tests and 
 (5)           PEDL137      31.2%           Ltd (7)              Ltd (7)         99.3              2 wells 
                                                                               --------  -------------------------- 
Horse                                       Horse                Horse 
 Hill                                  Hill Developments    Hill Developments 
 (5)           PEDL246      31.2%           Ltd (7)              Ltd (7)         43.6             As above 
------------  ---------  ----------  -------------------  -------------------  --------  -------------------------- 

(MORE TO FOLLOW) Dow Jones Newswires

October 17, 2016 02:00 ET (06:00 GMT)

DJ UK Oil & Gas Investments PLC Planning Application -2-

 of Wight                                                                                         Preparing 
 (Offshore)                              UKOG Solent          UKOG Solent                     drilling planning 
 (3)            P1916       100%            Limited              Limited         46.7             submission 
 of Wight                                                                                         Preparing 
 (Onshore)                                                                                    drilling planning 
 (2, 3)        PEDL331       65%             UKOG                 TBA            200.0            submission 
------------  ---------  ----------  -------------------  -------------------  --------  -------------------------- 
                                            Angus                Angus                           Drilling of 
Lidsey                                      Energy               Energy                          infill well 
 (1)            PL241       4.2%              (6)                  (6)            5.3          being considered 
------------  ---------  ----------  -------------------  -------------------  --------  -------------------------- 
                                                                                             planning application 
Markwells                                                                                       for appraisal 
 Wood                                     UKOG (GB)            UKOG (GB)                          and field 
 (2)           PEDL126      100%            Limited              Limited         11.2            development 
------------  ---------  ----------  -------------------  -------------------  --------  -------------------------- 


1. Oil field currently in production.

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

3. Exploration asset with drillable prospects and leads.

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 6% interest in Angus Energy, which has a 70% interest in Lidsey and a 55% interest in Brockham.

7. UKOG has a direct 48% interest in HHDL, which has a 65% interest in PEDL137 and PEDL246.

This information is provided by RNS

The company news service from the London Stock Exchange



(END) Dow Jones Newswires

October 17, 2016 02:00 ET (06:00 GMT)