TIDMUKOG
RNS Number : 0853T
UK Oil & Gas PLC
12 November 2019
UK Oil & Gas PLC
("UKOG" or the "Company")
Horse Hill Oil Field: HH-2z Horizontal Drilling Completed
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce
the successful completion of its Horse Hill-2z ("HH-2z") Portland
horizontal drilling campaign (UKOG 85.635% net controlling
interest). A total of approximately 2,500 ft of horizontal
trajectory was drilled wholly within the Portland reservoir's most
oil productive zone or "sweet spot", around 70 times greater
exposure to the sweet-spot than seen in the HH-1 Portland vertical
discovery well. The campaign's key technical objectives have now
all been successfully delivered.
The significantly increased exposure to the sweet-spot within
HH-2z, the first horizontal well in the field's Portland oil pool,
is the prime technical enabler for HH-2z to be capable of
delivering significantly greater flow rates than those seen in the
HH-1 vertical well.
The good, clean horizontal trajectory, together with the
continued indications of possible improved reservoir quality and
significantly lower pressure-depletion than expected, led the
Company to decide that there was little technical or economic
benefit in pursuing drilling to the maximum planned c. 3,000 ft
horizontal trajectory.
Following yesterday's completion of a comprehensive electric
logging programme, HH-2z is now being prepared for an extensive
extended well test ("EWT") programme, expected to commence in the
coming weeks. The EWT, which will include the use of a British
designed high-capacity/high-rate downhole electric pump or "ESP",
is planned over a minimum 90-day flow period, following which HH-2z
and HH-1 will be retained and converted into long-term oil
production wells.
Oil production from the HH-1 EWT has continued throughout
HH-2/2z drilling and will also continue in parallel with the HH-2z
EWT. Total HH-1 test production now stands at over 77,200
barrels.
Analysis and integration of the 240 ft of core, cuttings and
electric log data suites acquired in both the HH-2 pilot and HH-2z
horizontal continues. Any impactful results will be reported in due
course.
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:
"We are delighted to have safely and successfully delivered a
significant 2,500 ft of horizontal section within the Portland
reservoir's sweet-spot, the prime 35 ft zone containing the
reservoir's most oil productive sandstones.
The significant horizontal trajectory, combined with the
continued positive indications of increased reservoir quality and
lower pressure-depletion, effectively negated any technical or
economic need to attain the maximum planned c. 3,000 ft horizontal
section. As a result, HH-2z remains optimally placed to be able to
deliver its goal of significantly higher flow rates than the highly
productive HH-1 vertical discovery.
We now look forward to the imminent flow test campaign, a key
step towards delivering significant long-term production at Horse
Hill."
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 Production
Hill Hill tests ongoing,
Horse Hill Developments Developments HH-2/2z drilling
(5) PEDL137 85.635% Ltd Ltd 99.3 completed
---------------------- ---------- -------------- -------------- -------------- ---------------------
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
completed. 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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