TIDMUKOG
RNS Number : 8218V
UK Oil & Gas PLC
11 April 2019
UK Oil & Gas PLC
("UKOG" or the "Company")
Oil Production Test Update
Landmark 15,000 barrels of Portland oil reached at Horse
Hill
UK Oil & Gas PLC (London AIM: UKOG), is pleased to announce
that dry oil production (i.e. zero produced water) from the
Portland reservoir at the Horse Hill oil field, in which the
Company has a 50.635% majority interest, has continued at a stable
rate of over 220 barrels of oil per day ("bopd") delivering an
aggregate total Portland volume exceeding 15,000 barrels ("bbl") to
date. The Portland and Kimmeridge extended test programme has now
produced a significant aggregate volume in excess of 40,000
bbl.
For prudent Portland reservoir management purposes, the average
pumped rate from HH-1 continues to be maintained below the
previously reported 362 bopd calculated optimised sustainable
rate.
The well is currently shut in for a 60 hour pressure build up
test prior to the scheduled retrieval of down hole pressure gauges.
Following the pressure data retrieval and other maintenance over
the coming week, Portland test production will resume.
Preparations for the planned drilling start of HH-1z and HH-2 in
the second quarter of 2019 are nearing finalisation.
The HH-1 well and surrounding highly prospective licences
PEDL137 and PEDL246 are operated by UKOG's subsidiary Horse Hill
Developments Ltd in which the Company holds a 77.9% direct
interest.
Further details of extended well test ("EWT") results to date
are summarised below.
Horse Hill 2018-19 EWT Oil Production Milestones:
-- Over 40,000 barrels ("bbl") aggregate Kimmeridge and Portland oil production to date.
-- Over 25,000 bbl total Kimmeridge oil production.
-- Over 15,000 bbl total Portland production to date, flow continues.
-- 186 tankers of crude exported primarily to Perenco's Hamble
oil terminal. The Portland's 36deg API Brent quality crude
containing zero produced water, continues to be sold at prevailing
Brent crude oil prices, less a small deduction for handling and
marketing.
Stephen Sanderson, UKOG's Chief Executive, commented:
"The Portland's proven ability to sustain a stable dry oil
production rate of over 220 bopd for two months provides a further
landmark that solidly underpins the validity of the Company's
planned field development. We remain fully on track to drill new
horizontals in the second quarter of this year and are even more
confident that the new Portland horizontal well can achieve its
720-1,080 bopd target. We believe Horse Hill remains well
positioned to deliver future significant value."
Qualified Person's Statement
Rob Wallace, UKOG's principal technical advisor, who has over 40
years of relevant experience in the oil industry, has approved the
information contained in this announcement. Mr Wallace is a
Chartered Scientist, Chartered Geologist and Fellow of the
Geological Society of London, an active member of the American
Association of Petroleum Geologists, a member of the Petroleum
Exploration Society of Great Britain and a member of the South
African Geophysical Society.
For further information, please contact:
UKOG
Stephen Sanderson / Kiran Morzaria Tel: 01483 900582
WH Ireland (Nominated Adviser and Broker)
James Joyce / James Sinclair-Ford Tel: 020 7220 1666
Cenkos Securities PLC (Joint Broker)
Joe Nally / Neil McDonald Tel: 0207 397 8919
Novum Securities (Joint Broker)
John Bellis Tel: 020 7399 9400
Public Relations
Brian Alexander / David Bick Tel: 01483 900582
Glossary
degAPI a measure of the density of crude oil, as defined
by the American Petroleum Institute
oil field an accumulation, pool or group of pools of oil
in the subsurface that produces oil to surface.
---------------------------------------------------------
extended well a well test, as per the permission granted by
test (EWT) or the Oil and Gas Authority, with an aggregate flow
production test period duration over all zones of greater than
96 hours and generally up to 90 days maximum flowing
time per productive horizon. The objective being
to establish whether a discovery is commercially
viable and the best methods of future production
and recovery
---------------------------------------------------------
flow test a flow test or well test involves testing a well
by flowing hydrocarbons to surface, typically
through a test separator. Key measured parameters
are oil and gas flow rates, downhole pressure
and surface pressure. The overall objective is
to identify the well's capacity to produce hydrocarbons
at a commercial flow rate.
---------------------------------------------------------
horizontal well a well that during drilling is steered so as to
follow and remain within a particular geological
stratum or reservoir unit having a trajectory
that runs approximately parallel to the top and
or base of the target horizon
---------------------------------------------------------
UKOG Licence Interests
The Company has interests in the following UK licences:
Asset Licence UKOG's Licence Operator Area Status
Interest Holder (km(2)
)
Field currently
Avington UKOG (GB) IGas Energy temporarily shut
(1) PEDL070 5% Limited Plc 18.3 in
----------------- ---------- -------------- -------------- -------- -------------------------
Broadford BB-1 & 1z oil discovery,
Bridge UKOG (234) UKOG (234) planning application
(3) PEDL234 100% Ltd (4) Ltd (4) 300.0 approved
----------------- ---------- -------------- -------------- -------- -------------------------
Seeking alternate
sites to drill
Holmwood Holmwood and other
(3) PEDL143 40% UKOG UKOG 91.8 Kimmeridge prospects
----------------- ---------- -------------- -------------- -------- -------------------------
Horndean UKOG (GB) IGas Energy Field in stable
(1) PL211 10% Limited Plc 27.3 production
----------------- ---------- -------------- -------------- -------- -------------------------
Production tests
Horse Hill Horse Hill ongoing, two further
Horse Hill Developments Developments appraisal wells
(5) PEDL137 50.635% Ltd Ltd 99.3 scheduled for 2019
----------------- ---------- -------------- -------------- -------- -------------------------
Horse Hill Horse Hill
Horse Hill Developments Developments
(5) PEDL246 50.35% Ltd Ltd 43.6 As above
----------------- ---------- -------------- -------------- -------- -------------------------
Preparing planning
submission for
Arreton-3 oil appraisal
Isle of well and Arreton
Wight (Onshore) South exploration
(2, 3) PEDL331 95% UKOG UKOG 200.0 well
----------------- ---------- -------------- -------------- -------- -------------------------
Markwells UKOG (GB) UKOG (GB)
Wood PEDL126 100% Limited Limited 11.2 MW-1 P&A
----------------- ---------- -------------- -------------- -------- -------------------------
Notes:
1. Oil field currently in stable production.
2. Oil discovery pending development and/or appraisal
drilling.
3. Exploration asset with drillable prospects and leads.
4. Contains the Broadford Bridge-1 /1z Kimmeridge oil discovery,
the eastern extension of the Godley Bridge Portland gas discovery
plus further undrilled Kimmeridge exploration prospects.
5. Oil field with three productive and commercially viable
zones, EWT ongoing, two further wells HH-1z and HH-2 scheduled in
Q2 2019, development underway subject to grant of planning consent,
expected in Q3 2019.
6. UKOG has a direct 77.9% interest in HHDL, which has a 65%
interest in PEDL137 and PEDL246.
7. OGA consent received for the transfer of operatorship from
Europa to UKOG
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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