Turkey: Basur-3 drilling update #3

RNS Number : 1427H

UK Oil & Gas PLC

02 August 2021

 

  UK Oil & Gas PLC

  ("UKOG" or the "Company")

  Turkey: Basur-3 drilling update #3

UK Oil & Gas PLC (London AIM: UKOG) has been informed by Aladdin Middle East ("AME"), the operator of the Basur-3 ("B-3") appraisal well (UKOG 50% interest) that the rig has performed a successful recovery or 'fishing' operation to free a directional drilling assembly stuck in its 12¼" hole section and return it safely back to surface. The incident occurred after the well had made good progress, reaching a drilled depth immediately above the Garzan and Mardin target objectives, which remain untested.

AME now advise that in order to achieve the well's primary objective of appraising the Basur-1 oil discovery, a deviated mechanical sidetrack, B-3s, is now planned to test the Garzan and Mardin targets, the existing 12¼" hole section being considered unsuitable for onwards drilling.

As the joint venture's new seismic acquisition is scheduled to commence in August 2021, AME have advised that to ensure the sidetrack is optimally located, they plan to pause any drilling until after the acquisition and processing of the new seismic data over the sidetrack's envisaged trajectory.

Sufficient funds are available to deliver the sidetrack and seismic.

AME have almost 60 years of operational drilling experience in the naturally fractured and tectonically stressed rocks of SE Turkey. Since AME's discovery of the nearby look alike E. Sadak field in late 2013, they have successfully drilled 12 wells plus 3 sidetracks in the field.

As per the Company's release of 1^st July 2021, the Basur-3 oil appraisal well is located within the north-western structural culmination of the 60 km² Basur-Resan anticlinal structure, with a surface location approximately 1.2 km north of the 1964 Basur-1 oil discovery well. As previously reported on 14 October 2020, 15 January 2021, 21 June 2021, Basur-1 flowed oil to surface at encouraging rates over a 6-hour test period.

UKOG Turkey Ltd holds a 50% non-operated interest in the surrounding 305 km² Resan M47-b1, b2 licence.

Chief Executive Stephen Sanderson commented:

"Clearly the unforeseen delay in delivering the Basur appraisal objective is disappointing, but we remain pleased by AME's exemplary performance in resolving the stuck drilling assembly situation. We concur with AME that the most prudent course of action is to pause commencing the sidetrack until new modern seismic can be incorporated to further de-risk drilling and help achieve our objective."

Qualified Person's Statement

Matt Cartwright, UKOG's Commercial Director, who has 38 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: [phone]

W   H Ireland Ltd  (Nominated Adviser and Broker)

James Joyce / James Sinclair-Ford  Tel: [phone]

Communications

Brian Alexander                                                                 Tel: [phone]

Glossary

anticline	a domed shape geological structure. Often the anticline's geological expression can be seen at surface where it is expressed as a surface anticline. This is the case at Basur-Resan.
discovery	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.
naturally fractured rocks	rocks containing natural cracks or fissures caused by geological stresses; fractures can significantly enhance the permeability of rocks by connecting pores together to form enhanced fluid pathways.
Oil field	a subsurface oil accumulation existing within a single or multiple geological reservoir unit from which oil is recovered to surface. Note that an oil field can consist of one or more oil pools or distinct reservoirs.
oil pool	a subsurface oil accumulation existing within a single geological reservoir unit.
sidetrack	A secondary wellbore drilled away from the original hole. The sidetrack utilises the existing well's casing down to the point where the sidetrack must commence in order to reach the target.
tectonic stress	natural compressive and extensional stresses within the earth's crust created by the juxtaposition and or collision of tectonic plates. In the case of SE of SE Turkey by the collision of the Eurasian/Anatolian plate with the Arabian plate to form the Zagros-Taurus mountain belt and associated compressive stress.

UKOG Licence Interests

The Company has interests in the following UK and international licences:

Asset	Licence	UKOG Interest	Licence Holder	Operator	Area (km 2 )	Status
Horndean  1	PL211	10%	UKOG (GB) Limited	IGas Energy Plc	27.3	Field in stable production
Horse Hill  ¹ ,	PEDL137	85.635%	Horse Hill Developments Ltd  ⁶	Horse Hill Developments Ltd  ⁶	99.3	Field in stable production
Horse Hill  ¹ ,	PEDL246	85.635%	Horse Hill Developments Ltd  ⁶	Horse Hill Developments Ltd  ⁶	43.6	Field in stable production
Avington  1	PEDL070	5%	UKOG (GB) Limited	IGas Energy Plc	18.3	Field temporarily shut in
Resan Turkey  2, 3, 8	M-47-b1, b2	50%	UKOG Turkey Ltd	Aladdin Middle East	305	Appraisal of Basur-Resan oil discovery plus further expl. prospects. Drilling planned in Summer 2021
Loxley  2, 3, 7	PEDL234	100%	UKOG (234) Ltd  4	UKOG (234) Ltd  4	300	Loxley/Godley Bridge gas discovery, BB-1/1z oil discovery
Isle of Wight  2, 3	PEDL331	95%	UKOG	UKOG	200	Planning application submitted for Arreton oil appraisal well

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 Loxley Portland gas accumulation, the Broadford Bridge-1/1z Kimmeridge oil discovery, plus further undrilled Kimmeridge exploration prospects.

5.  Portland and Kimmeridge oil field with productive and commercially viable zones, HH-1 in stable oil production, production planning consent granted in September 2019, long-term production consent granted in March 2020.

6.  UKOG has a direct 77.9% interest in HHDL, which has a 65% interest in PEDL137 and PEDL246.

7.   Gas discovery pending appraisal drilling and development with underlying Kimmeridge potential

8.  High-impact oil appraisal project with an upside OIP range of 150-500 mmbbl gross with expected recovery factors of 10-20% of OIP

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014

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