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UK Oil and Gas Investments on track

By BFN News | 08:51 AM | Tuesday 28 June, 2016


UK Oil and Gas Investments (UKOG) said it is on track for two further permitted Kimmeridge exploration wells in 2017. KEY HIGHLIGHTS - Strong progress at Horse Hill with game-changing commercially viable initial oil flow rates from 3 horizons - 1,688 bopd total aggregate stable dry oil flow rate from the Kimmeridge plus the overlying Portland - Proof of concept and first commercially viable initial flow rates from the Kimmeridge Limestones at Horse Hill - 1,365 bopd aggregate stable dry oil flow rate from two naturally fractured Kimmeridge Limestones - Post period-end, key further acquisitions made the Company the leading player in the Kimmeridge Limestone oil play, more than doubling UKOG's gross overall acreage in the prime Weald Basin Kimmeridge 'sweet spot' - 100% ultimate ownership of multiple Horse Hill Kimmeridge look-alike prospects in the Broadford Bridge licence - Accelerated appraisal and development plans at Horse Hill and Markwells Wood oil discoveries - 37% increase in Horse Hill licence interests and hence in any associated recoverable oil resources - New Isle of Wight Licence added 17 MMbbl net P50 recoverable contingent and prospective resources - Godley Bridge Portland gas discovery extension into Broadford Bridge added potential contingent resources - 370% increase in net attributable conventional P50 Contingent and Prospective Resources, from 4.64 MMbbl to 21.64 MMbbl (note: excludes all Kimmeridge resources and Portland in Horse Hill and Broadford Bridge) - Stable oil production from Horndean, Avington, Brockham and Lidsey fields - Key licence extensions in process of signature by the Oil & Gas Authority - £4 million raised from institutional investors via a share placing CHAIRMAN'S STATEMENT "The company and its investments are on an exciting journey thanks to the intense efforts of our technical team and the related investment in leading edge science and technology, which has underpinned the rationale for our recent strategic acquisitions. "As a result of the ground-breaking flow test at Horse Hill and our recent acquisitions, UKOG is now a key investor and player in the UK onshore oil and gas industry, and in pole position in the new Kimmeridge Limestone oil play. "The growth in our asset base has seen corresponding rapid growth in our net recoverable oil resources across the Weald Basin and the Isle of Wight. "The ground-breaking flow test results at Horse Hill in February and March were considerably above our expectations and the recent acquisitions of the Holmwood and Broadford Bridge licences have significantly increased our overall acreage within the prime Kimmeridge "sweet spot" in the Weald. "We enjoy the leading technical knowledge and acreage positions within this new and exciting resource play. "The company has a very clear two-year strategy to advance the Kimmeridge oil play to the point of commercial development. "Broadford Bridge is 'drill-ready' and has the necessary permits. "In conjunction with the permitted Holmwood site, they offer UKOG exposure to look-alike potential to Horse Hill and we hope to be able to demonstrate and replicate similar drilling results to Horse Hill by the end of 2017. "In parallel, we will be pushing Horse Hill dubbed by the media as the 'Gatwick Gusher', towards extended long-term production tests, appraisal wells and 3D seismic acquisition and analysis. "The company will also be seeking regulatory approvals for a well to test the Portland gas discovery and Kimmeridge at Godley Bridge. "It should be noted that the onshore industry has now recognised the Kimmeridge potential since we are aware of two planned Kimmeridge wells from existing Weald oil fields by competitors. "However, we will continue to have an appetite for further acquisitions, to strengthen and consolidate our position in the Weald sweet spot and maintain our leading position." At 8:51am: (LON:UKOG) Uk Oil Gas Investments Plc a Ord 0.01p share price was +0.1p at 1.38p Story provided by StockMarketWire.com

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