Horse Hill Water Reinjection Update

RNS Number : 0594R

UK Oil & Gas PLC

27 February 2023

 

UK Oil & Gas Plc

("UKOG" or the "Company")

 Horse Hill Water Reinjection Update

UK Oil & Gas PLC (London AIM: UKOG)  is pleased to announce that, as a necessary precursor to its planned Horse Hill-2z ("HH-2z") Portland formation water reinjection project, the Company has now installed three, shallow, groundwater monitoring boreholes at its 85.635% owned producing oil field.

The water injection programme seeks to improve the field's net earnings by approximately £250,000 per annum by eliminating the substantive costs of tankering and disposing produced saline formation water at distant third-party sites.  The removal of tankering will also reduce the field's overall carbon footprint. The injection itself will help maintain reservoir pressure which can help improve ultimate oil recovery.

Initial sampling of the boreholes, which terminate within the impermeable Weald Clay formation, found no obvious groundwater immediately beneath the site. A three month baseline monitoring period is now underway prior to the start of reinjection operations.

Surrey County Council and the Environment Agency approved the installation of these boreholes, the frequent sampling of which is designed to ensure that no produced saline Portland formation water penetrates into the Weald Clay sediments underlying the site.

Stephen Sanderson UKOG's Chief Executive commented:

" The new boreholes are a key step towards delivering HH-2z produced water reinjection, ultimately designed to help reduce operating costs by some £250,000 per year and improve the field's oil recovery. The work is fully in keeping with current environmental standards and practices and demonstrates UKOG's responsible attitude towards ensuring the area beneath the site remains as well protected as possible."

Qualified Person's Statement

Matt Cartwright, UKOG's Commercial Director, who has 39 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 / Allen D Howard		Tel: [phone]
WH Ireland Ltd (Nominated Adviser and Broker)
James Joyce / Andrew de Andrade		Tel: [phone]
Communications
Brian Alexander		Tel: [phone]

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

END

 

 

MSCUSAUROSUUUUR