TIDMUKOG
RNS Number : 6153Q
UK Oil & Gas PLC
22 October 2019
UK Oil & Gas PLC
("UKOG" or the "Company")
Horse Hill Oil Field: HH-2 Pilot Completed, HH-2z Horizontal
Trajectory Underway
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce
that, following the successful completion of the Horse Hill-2
("HH-2") Portland pilot well, Horse Hill-2z ("HH-2z") horizontal
drilling operations are now underway (UKOG 85.635% net controlling
interest). HH-2z aims to deliver a circa 3,200 ft horizontal
section wholly within the Portland reservoir's most oil productive
zone or "sweet spot", the presence and quality of which has been
further defined by the pilot well's highly successful coring and
electric logging programmes.
The significant oil saturations and high permeabilities observed
in HH-2 core and logs, indicate that the "sweet spot" has likely
contributed the lion's share of the 29,568 barrels of Brent quality
oil produced to date from Portland extended well testing ("EWT")
operations at HH-1.
HH-2/2z, the first horizontal well 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 EWT 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.
HH-2z Operations
HH-2z operations were initiated through the pilot well's 95/8"
casing at the planned "kick-off" point
1320 ft below rig floor, immediately above cement plugs
isolating the Portland reservoir below. The well is now building
angle towards the horizontal within 8 1/2 " diameter hole and will
continue down to a drilled depth of around 2300 ft, just above the
Portland target zone. This section will then be cased and cemented
with a 7" liner.
The well's trajectory will then continue within 6" diameter
hole, entering the Portland target zone approximately 850 ft to the
southeast of the HH-2 surface location. HH-2z's expected total
measured depth is around 5900 ft from rig floor, of which c. 3200
ft is planned within the reservoir's sweet-spot. The well is
expected to reach its total depth around mid-November.
To ensure the borehole remains wholly within the Portland 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.
Stephen Sanderson, UKOG's Chief Executive, commented:
"Our confidence in the HH-2z horizontal's ability to deliver
significant flow rates has been further boosted by the pilot well's
better than expected geological results. Our subsurface team's
focus is now firmly upon steering the well wholly within the target
zone, the Portland sweet spot , demonstrably the most oil
productive part of the reservoir. I have every confidence we can
deliver the desired positive result."
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
---------------------------------------------------------------
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 and volumes.
---------------------------------------------------------------
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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