Information  X 
Enter a valid email address

UKOG's profit

By BFN News | 07:27 AM | Wednesday 24 June, 2015

UK Oil & Gas has widened its H1 pretax loss to £0.38m, from a loss of £0.29m. Turnover was £0.2m, from nil. UKOG was pleased with results, noting the balance sheet put it in an excellent position to benefit from the present oil price downturn and rivals' financial difficulties. UKOG (GB) Limited, UKOG Weald Limited and UKOG Solent Limited: · UKOG completed its NOP acquisition on 17 October 2014. · The NOP companies were re-named UKOG (GB) Limited, UKOG Weald Limited and UKOG Solent Limited. · Five UK licences were acquired from NOP, four onshore and one offshore, all located in the South of England. · Four assets are in the Weald Basin, one in the analogous Wessex-Purbeck-Wight basin. · The assets include the Horndean (UKOG interest 10%) and Avington (UKOG interest 5%) onshore producing oil fields, an offshore Isle of Wight exploration licence (UKOG interest 77.5%) and the Baxters Copse (UKOG interest 50%) and Markwells Wood (UKOG interest 100%) onshore Jurassic Great Oolite oil discoveries. · On 28 October 2014, UKOG jointly applied for a 200 km2 onshore licence (UKOG 65%), adjacent to the offshore Isle of Wight licence (P1916), proposing a firm exploration well and seismic, as part of the UK's 14th Landward Licence Round ("14th Round"). · On 25 March 2015, UKOG announced that at P1916, the main prospective Portland Limestone and Triassic Sherwood Sandstone reservoir objectives in the undrilled "M Prospect" contained potential unrisked OIP volumes of 40 MMbbl and 76.5 MMbbl respectively. A gas only case for the Triassic Sherwood estimated a potential gross gas in place ("GIP") volume of 197 billion standard cubic feet of gas ("bcf"). · As announced on 2, 3, 20 February and 12 March 2015, UKOG, via four separate transactions, increased its working interest in the PEDL126 Markwells Wood and P1916 Isle of Wight licences to 100% and 77.5%, respectively. · Subsequent to the reporting period, on 13 May 2015, the Board announced that the Oil and Gas Authority ("OGA") granted one-year extensions to the exploration period of the PEDL126 Markwells Wood and PEDL233 Baxters Copse licences. Similarly, on 15 June 2015, the Board announced a one-year extension to the P1916 offshore Isle of Wight licence. Horse Hill Developments Limited ("HHDL"), Licences PEDL137 and PEDL246, Weald Basin: · Preliminary results of the HH-1 well were announced on 24 October 2014, 5 November 2014 and 17 December 2014, stating that an oil discovery was made in the Upper Portland Sandstone, with oil shows and elevated gas readings in the underlying Kimmeridge shales and limestones. · On 18 March 2015 and 9 April 2015, the Company announced that further well analysis, by the Company and by Nutech had determined that the well data implied an OIP volume of 158 MMbbl per square mile within a 653 feet aggregate pay section, primarily within three limestones and interbedded shales of the Kimmeridge, and the shales of the Oxford and Lias sections. Approximately 72% of OIP, or 114 MMbbl, lies within the Upper Jurassic Kimmeridge interbedded limestone and shale sequence. · After the reporting period, on 5 June 2015, UKOG announced that Schlumberger's independent review of OIP at the HH-1 discovery is 271.4 MMbbl per square mile. · After the reporting period, on 18 June 2015, UKOG announced that Nutech calculated that the total Jurassic shale plus tight conventional reservoir section contained in the 55 square miles of UKOG's two Horse Hill licences (PEDL137 and PEDL246) is a Best Estimate, or P50, OIP of 9,245 MMbbl. The most significant OIP within the Jurassic section is contained within the shales and tight conventional reservoir limestone sequences of the Kimmeridge, with a calculated Best Estimate, or P50, total Kimmeridge OIP of 5,230 MMbbl. · In March 2015, in two separate transactions, the Company increased its direct interest in HHDL by a further 10%, from 20% to 30% for total consideration of £932,000. · After the reporting period, on 13 May 2015, the Board reported that the OGA had granted a one-year extension to the PEDL137 exploration period to 30 September 2016. The Company is informed that HHDL would seek, in conjunction with the OGA and other regulators, to move the PEDL137 licence into the Production Period, via, inter alia, the submission of a Horse Hill Field Development Plan to the OGA. The PEDL137 licence provides for a potential Production Period of 19 years. Lidsey and Brockham Producing Oil Fields: Angus Energy Limited ("Angus Energy"): · UKOG owns a 6% share in Angus Energy, which operates and produces oil from both the Lidsey and Brockham oil fields in the UK Weald Basin, south of London. · The Brockham field is the closest analogous Upper Portland Sandstone producing oil field to the HH-1 discovery. Lidsey produces from the same Great Oolite limestone reservoir as UKOG's Horndean and Avington oil fields and the Markwells Wood and Baxter's Copse discoveries. · Angus Energy is currently the nominated operator and 22% owner of HHDL. Angus Energy reduced its ownership in HHDL down from 40% during the reporting period. · Angus Energy plans to drill a side-track at Brockham and a new well at Lidsey. Story provided by

a d v e r t i s e m e n t