TIDMUKOG
RNS Number : 8968P
UK Oil & Gas PLC
15 October 2019
UK Oil & Gas PLC
("UKOG" or the "Company")
Horse Hill Oil Field - Successful Completion of HH-2 Coring
Operations
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce
the successful completion of an extensive conventional coring
programme in its 85.635% owned Horse Hill-2 ("HH-2") Portland pilot
well. Preliminary visual analysis of a total of 241.45 ft of core
has clearly identified the Portland reservoir's most productive
zone or "sweet spot", which will now be the target of the planned
circa 1,000 m HH-2z horizontal trajectory, expected to commence
next week.
Live oil was observed "bleeding" profusely from core throughout
the sweet-spot, the Upper Portland reservoir's most porous,
permeable and oil productive interval. Lesser degrees of oil bleed,
together with oil shows and oil staining were also observed from
porous sandstone intervals lying above and below the
sweet-spot.
The core is now at a Surrey-based laboratory, where an extensive
geological and petrophysical analysis programme is now underway.
Results of analyses that directly impact the field's possible
increased oil in place and recoverable oil volumes will be reported
in due course.
Having also reached its planned depth of around 2320 ft below
rig floor, the well is now being prepared for electric logging,
following which it will be plugged back to the "kick-off" point
delineating the start of the HH-2z horizontal section.
To ensure the borehole remains wholly within the sweet spot,
HH-2z will be actively "geo-steered" during drilling to keep within
a series of core and electric log-derived diagnostic geological
markers delineating the zone's upper and lower boundaries. The
successful delivery of such an optimally placed horizontal
trajectory is designed to optimise flow rates and oil recoveries
from the Portland reservoir.
UKOG holds a controlling 85.635% interest in the Horse Hill oil
field and surrounding highly prospective PEDL137 and PEDL246
licences, which are operated by UKOG's subsidiary company, Horse
Hill Developments Ltd.
About HH-2/2z:
HH-2/2z, the first of two new horizontal wells in the field's
Portland oil pool, is designed to be retained as a future
production well, capable of delivering flow rates significantly
higher than the previously reported 362 barrels of oil per day from
the HH-1 vertical Portland discovery well. Following a planned
extensive HH-2z production flow-testing campaign, both HH-2z
Portland and the HH-1 Kimmeridge well are expected to be put into
long term production by the end of 2019.
Stephen Sanderson, UKOG's Chief Executive, commented:
"The HH-2 coring programme has delivered its key short-term goal
of defining the Portland reservoir's sweet-spot, the most porous
and permeable vertical zone within the oil pool. We can now
confidently proceed ahead to drill the HH-2 horizontal trajectory
wholly within the most oil productive part of the Portland, the
zone capable of delivering the significant flow rates we seek."
Qualified Person's Statement
Matt Cartwright, UKOG's Commercial Director, who has over 36
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 / Kiran Morzaria Tel: 01483 900582
WH Ireland Ltd (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 Tel: 01483 900582
Glossary
coring a drilling technique that involves using a doughnut-shaped
drilling bit to capture or "cut" a continuous cylinder-shaped
sample of in-situ rock. The core is captured in
a steel pipe or "core barrel" above the bit. Core
is normally cut in 30 feet lengths, or multiples
of 30 feet, and with a diameter of 3-4.5 inches.
Core is taken in petroleum reservoir rocks for
detailed laboratory analyses of geological, geochemical
petrophysical and geomechanical properties
horizontal a well that during drilling is steered so as to
well 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
---------------------------------------------------------------
oil field an accumulation, pool or group of pools of oil
in the subsurface that produces oil to surface
---------------------------------------------------------------
oil in place the quantity of oil or petroleum that is estimated
to exist within the reservoir or accumulation i.e.
oil in the ground
---------------------------------------------------------------
oil-water A bounding surface in an oil pool or reservoir
contact (OWC) above which predominantly oil occurs and below
which predominantly water occurs. The OWC is a
key determinant for the calculation of oil in place
within a conventional hydrocarbon accumulation
---------------------------------------------------------------
well test or flow 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.
---------------------------------------------------------------
UKOG Licence Interests
The Company has interests in the following UK licences:
Asset Licence UKOG Licence Operator Area (km(2) ) Status
Interest Holder
UKOG IGas Field currently
Avington (GB) Energy temporarily
(1) PEDL070 5% Limited Plc 18.3 shut in
---------------------- ---------- -------------- -------------- -------------- ---------------------
BB-1/1z oil
discovery,
Broadford Loxley-1 gas
Bridge/Loxley/Godley appraisal
Bridge UKOG UKOG well planning
(2, 3, (234) (234) application
8) PEDL234 100% Ltd (4) Ltd (4) 300.0 submitted
---------------------- ---------- -------------- -------------- -------------- ---------------------
Finalising
new site selection
to drill Portland
UKOG and Kimmeridge
A24 (3) PEDL143 67.5% UKOG (7) 91.8 prospects
---------------------- ---------- -------------- -------------- -------------- ---------------------
UKOG IGas
Horndean (GB) Energy Field in stable
(1) PL211 10% Limited Plc 27.3 production
---------------------- ---------- -------------- -------------- -------------- ---------------------
Horse Horse
Hill Hill Production
Horse Hill Developments Developments tests ongoing,
(5) PEDL137 85.635% Ltd Ltd 99.3 HH-2/2z drilling
---------------------- ---------- -------------- -------------- -------------- ---------------------
Horse Horse
Hill Hill
Horse Hill Developments Developments
(5) PEDL246 85.635% 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
---------------------- ---------- -------------- -------------- -------------- ---------------------
UKOG UKOG
Markwells (GB) (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. Portland and Kimmeridge Oil field with productive and
commercially viable zones, EWT ongoing, production planning consent
granted in September 2019, appraisal/development drilling campaign
underway. Long term production start expected late 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
8. Gas discovery pending appraisal drilling and development with
underlying Kimmeridge potential
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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