Operations Commence at Broadford Bridge-1

RNS Number : 2835G

UK Oil & Gas Investments PLC

25 May 2017

 

UK Oil & Gas Investments PLC

("UKOG" or the "Company")

Operations Commence at Broadford Bridge-1, PEDL234 Licence, Weald Basin, UK

UK Oil & Gas Investments PLC (London AIM and NEX: UKOG) announces that the drilling rig and key equipment necessary to drill the Broadford Bridge-1 ("BB-1") Kimmeridge Limestone well are now on site. All regulatory permissions are now in place and drilling is expected, therefore, to commence shortly. The BB-1 well is located in the 300 km² PEDL234 licence, in which the Company has a 100% interest via its ownership of the licence's operator, Kimmeridge Oil & Gas Limited.  

The BB-1, an exploration step-out well, will test a geological look-alike to Horse Hill, located on the southern flank of the Weald Basin, and is, therefore, designed to test both the southerly extension of the Kimmeridge Limestone oil play across the Weald Basin and its development within the licence. The drilling will use tried and trusted conventional oil field techniques to test four naturally fractured Kimmeridge Limestone reservoir horizons, the uppermost two of which were successfully flow tested at the Company's Horse Hill oil discovery in 2016.

The well will acquire the most comprehensive data set gathered to date over the Kimmeridge Limestone sequence, to include extensive conventional coring and electric logging aimed at characterising natural fracturing and other key reservoir parameters. Once drilled, cored and logged, the well will be completed as a potential oil-producer and flow tested.

Stephen Sanderson, UKOG's Executive Chairman commented:

"The BB-1 well will add materially to our knowledge and understanding of the Kimmeridge Limestone play within the Licence and across the wider Weald Basin. BB-1 is a key piece of the Kimmeridge Limestone puzzle."

Qualified Person's Statement

Stephen Sanderson, UKOG's Executive Chairman, who has over 35 years of relevant experience in the oil industry, has approved the information contained in this announcement. Mr Sanderson is a Fellow of the Geological Society of London and is an active member of the American Association of Petroleum Geologists.

For further information, please contact:

UK Oil & Gas Investments PLC

Stephen Sanderson / Kiran Morzaria                                                      Tel: [phone]

WH Ireland (Nominated Adviser and Broker)

James Joyce / James Bavister                                                                     Tel: [phone]

Cenkos Securities PLC (Joint Broker)

Nick Tulloch / Neil McDonald                                                                     Tel: [phone]

Square 1 Consulting (Public Relations)

Brian Alexander / David Bick                                                                      Tel: [phone]

Glossary:

discovery	a discovery is a petroleum accumulation for which one or several exploratory wells have established through testing, sampling and/or logging the existence of a significant quantity of potentially moveable hydrocarbons
electric logs	tools used within the wellbore to measure the rock and fluid properties of surrounding rock formations
limestone	a sedimentary rock predominantly composed of calcite (a crystalline mineral form of calcium carbonate) of organic, chemical or detrital origin. Minor amounts of dolomite, chert and clay are common in limestones. Chalk is a form of fine-grained limestone
naturally fractured reservoirs	fractured reservoirs contain cracks or surface of breakage within rock; fractures can enhance permeability of rocks greatly by connecting pores together; naturally fractured reservoirs have been created over geological time by nature, not man-made via hydraulic fracturing
step-out well	a well designed to determine the lateral extent of a discovered hydrocarbon accumulation or play

UKOG Licence Interests

The Company has interests in the following UK licences:

Asset	Licence	UKOG's Interest	Licence Holder	Operator	Area (km2)	Status
Avington 1	PEDL070	5%	UKOG (GB) Limited	IGas Energy Plc	18.3	Field in stable production
Baxters Copse 2	PEDL233	50%	UKOG Weald Limited	IGas Energy Plc	89.6	appraisal/development well planned; licence extended to 2018
Broadford Bridge 3	PEDL234	100%	Kimmeridge Oil & Gas Limited 4	Kimmeridge Oil & Gas Limited 4	300.0	BB-1 well permitted, drilling planned in 2017
Holmwood 3	PEDL143	30%	UKOG	Europa Oil & Gas (Holdings) plc	91.8	Holmwood-1 exploration well planned in 2017
Horndean 1	PL211	10%	UKOG (GB) Limited	IGas Energy Plc	27.3	Field in stable production
Horse Hill 5	PEDL137	31.2%	Horse Hill Developments Ltd 7	Horse Hill Developments Ltd 7	99.3	Submitted planning application for long term production tests and drilling of two wells
Horse Hill 5	PEDL246	31.2%	Horse Hill Developments Ltd 7	Horse Hill Developments Ltd 7	43.6	As above
Isle of Wight (Offshore) 3	P1916	100%	UKOG Solent Limited	UKOG Solent Limited	46.7	Preparing drilling planning submission
Isle of Wight (Onshore) 2, 3	PEDL331	65%	UKOG	TBA	200.0	Preparing drilling planning submission
Markwells Wood 2	PEDL126	100%	UKOG (GB) Limited	UKOG (GB) Limited	11.2	Submitted planning application for appraisal and field development

Notes:

1. Oil field currently in production.

2. Oil discovery pending development and/or appraisal drilling.

3. Exploration asset with drillable prospects and leads. Contains the extension of the Godley Bridge Portland gas discovery and the site of the forthcoming Broadford Bridge-1 well.

4. UKOG has a 100% interest in Kimmeridge Oil & Gas Limited, which has a 100% interest in PEDL234.

5. Oil discovery with recently completed flow testing.

6. UKOG has a direct 48% interest in HHDL, which has a 65% interest in PEDL137 and PEDL246.

 

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