Turkey: Pinarova-1 Update

UK Oil & Gas PLC

03 May 2023

 

UK Oil & Gas PLC

("UKOG" or the "Company")

Turkey: Pinarova-1 Update

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that Pinarova-1 has reached its final depth of 600 metres below surface. Electric logs over both the 9⅝ inch cased hole and  8½ inch open hole section have been acquired and the delivery of a final log interpretation is awaited.

Plans are now being made to run a conventional selective cased hole flow test operation. The proposed uppermost zone, from approximately 255-285 metres, corresponds to a 12-hour period of strong oil odour at surface and the recovery of light c. 38˚ API oil within fluids returned to surface from the same depth. The sourcing of suitable perforating guns to run in the 9⅝ inch casing is currently underway.

A sample of the oil recovered from Pinarova (as detailed above) along with samples of the 41.7˚ API oil recovered from the active seismic shot-hole seep (see RNS of 11th January 2023 and 30th June 2022) and 43˚ API oil from the nearby East Sadak field, have now also been dispatched to the UK for detailed geochemical study.

The oil study's primary objectives are to determine; a. whether the Pinarova oil sample matches the oil from the shot-hole seep, b. whether it's derived from the same general Upper Jurassic source as E. Sadak or c. it has another origin from  shallower Cretaceous origin. The geochemical results will assist the Company's  current investigations into the possibility that a deeper light oil accumulation may also exist below the Pinarova area within Cretaceous limestones.

Pinarova-1, located 6 km north of the Basur-1 oil discovery, was designed to test a working hypothesis, supported by well and seismic data, that the active 41.7˚ API light oil seep found last summer in a seismic shot hole above the Pinarova structure, is directly fed by and connected to an underlying light oil accumulation of some 9 km² areal extent within the Hoya limestones, which lie between c. 300-645 metres below surface.

UKOG holds a 50% non-operated interest in Pinarova-1 and the surrounding 305 km² Resan licence, which also includes the as yet undeveloped Basur-1 light oil discovery.

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/James Bavister		Tel: [phone]
Communications
Brian Alexander		Tel: [phone]

Glossary

°API	a measure of the density of crude oil, as defined by the American Petroleum Institute
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
drill cuttings	small chips of rock of a few millimetres or smaller diameter that are produced from the cutting and grinding action of the drill bit against the rock formation and which are brought to surface within the drilling fluid or mud.
limestone	a sedimentary rock predominantly composed of calcite (a crystalline mineral form of calcium carbonate) of organic, chemical or detrital origin.
oil pay	a reservoir or portion of a reservoir that contains economically producible hydrocarbons. The term derives from the fact that it is capable of "paying" an income.
oil seep	a natural flow of crude oil at or close to the earth's surface whose origin is from a petroleum accumulation or oil source rock at depth.
oil shows	The presence of visible moveable oil on drill cuttings and or within the drilling fluid seen at surface
seismic amplitude	a measure of the seismic reflection strength at a given subsurface interface
seismic amplitude anomaly	a seismic amplitude that is either higher or lower than the general amplitudes seen elsewhere at the same geological interface indicating a possible lateral change in rock properties resulting from a possible change in rock fluid content i.e., the presence of hydrocarbons and or lithology and or porosity.
shot hole	a shallow borehole in which a small amount of explosive is detonated in order to generate a seismic signal
swabbing, swab test	a basic testing procedure using an array of rubber swabbing cups attached to heavy wireline within production tubing. When the swabbing cups are moved repeatedly upwards this creates a suction or basic pumping effect in the tubing which can reduce/unload the head of fluids adjacent to the reservoir which can induce inflow from the formation into the well. Swabbing was used at UKOG's Horse Hill field in 2016 to induce flow from both the Kimmeridge and Portland zones.

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.

 

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