P1916 Offshore Isle of Wight Licence Extension

RNS Number : 5482U

UK Oil & Gas Investments PLC

19 January 2017

 

UK Oil & Gas Investments PLC

("UKOG" or the "Company")

 P1916 Offshore Isle of Wight Licence Extension, Wessex-Weald Basin, UK

UK Oil & Gas Investments PLC (LSE AIM/ISDX: UKOG) announces that UKOG Solent Limited, a 100%-owned subsidiary, has been advised that the Oil and Gas Authority has granted a one-year extension to the Initial Term of the Company's offshore P1916 licence to 31^st January 2018. The Company holds a 100% interest in P1916.

As previously reported by the Company, P1916 contains an undrilled Portland limestone conventional oil prospect, which is a look-alike to the nearby Arreton Portland oil discovery, located in the Company's adjacent PEDL331 onshore licence. A deeper Triassic sandstone prospect lies directly beneath the Portland target in P1916.

The company plans to submit a planning application to drill one or more prospects in the Isle of Wight during the coming year.

Stephen Sanderson, UKOG's Executive Chairman, commented:

"UKOG's future planned Isle of Wight operations are aimed solely at the extraction of oil from conventional naturally-fractured limestone and sandstone reservoirs, not shale, and therefore will not utilise massive hydraulic fracturing.

Our drilling on the island is intended to cause zero hazards to any groundwater by employing the same drilling fluids and practices used by the water supply industry to drill drinking-water abstraction wells within the UK's limestone aquifers. This drilling technology is intended to include the use of modern biodegradable drilling fluids, manufactured from 100% natural plant starches, which are approved for use under the UK's Water Supply Regulations."

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]

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
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	a petroleum reservoir rock containing tectonically induced open fractures, joints and fissures which are filled with petroleum. The petroleum filled fractures can provide essential reservoir porosity and permeability, essential permeability only, or provide a permeability enhancement alone. Such reservoirs have been created over geological time by nature, not man-made via hydraulic fracturing
prospect	a project associated with a potential accumulation that is sufficiently well defined to represent a viable drilling target
sandstone	a clastic sedimentary rock whose grains are predominantly sand-sized. The term is commonly used to imply consolidated sand or a rock made of predominantly quartz sand
shale	a laminated and fissile very fine-grained sedimentary rock, consisting of compacted silt and clay-size mineral particles. Can contain high proportions of organic material, which if subjected to heat and pressure over geological time can generate petroleum (a petroleum source rock)
starch	starch is a carbohydrate of a general formula (C6H10O5)n and is derived from corn, wheat, oats, rice, potatoes, yucca and similar plants and vegetables.

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	Reviewing economics of appraisal/development well; 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
Brockham	PL235	1.81%	Angus Energy 6	Angus Energy 6	8.9	Well intervention programme ongoing
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
Lidsey	PL241	1.4%	Angus Energy 6	Angus Energy 6	5.3	Drilling of infill well being considered
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.

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 2.78% interest in Angus Energy, which has a 50% interest in Lidsey and a 65% interest in Brockham; Angus hold an option to increase their Lidsey interest by a further 10% to 60%.

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

 

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