Source - RNS
RNS Number : 6572M
UK Oil & Gas Investments PLC
17 October 2016
 

17 October 2016                                              

UK Oil & Gas Investments PLC

("UKOG" or the "Company")

 

Horse Hill-1 Oil Discovery, Weald Basin, UK

Planning Application for Significant Appraisal Programme, UK Weald Basin

 

UK Oil & Gas Investments PLC (LSE AIM/ISDX: UKOG) announces that Horse Hill Developments Ltd ("HHDL") has informed the Company that a planning application has been submitted to Surrey County Council seeking permission to conduct further significant appraisal testing and drilling at the Horse Hill-1 ("HH-1") oil discovery, located in Licence PEDL137, close to Gatwick Airport. The HH-1 oil discovery achieved an aggregate stabilised flow rate of 1688 bopd from two Kimmeridge limestones plus the overlying Portland sandstone. The Company holds a 31.2% interest in PEDL137.

Subject to the required regulatory approvals, the first phase of the proposed development is planned to consist of the extended production testing of four zones, designed to confirm the commerciality of the discovery, and to examine a previously untested Kimmeridge limestone. The planning application also seeks permission for a two-well drilling phase, which contingent upon successful testing, will further appraise the extent of the oil accumulations and the field's production capabilities. The proposed drilling phase includes plans for a deviated sidetrack, HH-1z, to be drilled from the existing HH-1 borehole, together with a new well, Horse Hill-2 ("HH-2"). On completion of drilling, both the HH-1z and HH-2 are planned to be long-term production tested.

In order to minimise impact to the locality, feedback from both a public consultation and engagement process, undertaken in July, and subsequent meetings with local residents' representatives, was incorporated into the envisaged development design and planning application. The normal local planning authority cycle for an application not requiring an Environmental Impact Assessment such as at Horse Hill, takes approximately 13 weeks.

HHDL and the Company's Interest in the Licence

HHDL is a special purpose vehicle, which owns a 65% working interest and operatorship of the Licence. UKOG now owns a 48% beneficial shareholding in HHDL, which equates to a 31.2% net working interest in the Licences. The remaining 35% interest in the Licences is held by Magellan Petroleum (UK) Limited.

 

Stephen Sanderson, UKOG's Executive Chairman, commented:

"This planning application, together with our recent Markwells Wood appraisal and development planning application, is firmly designed to move these assets into near term oil production and the monetisation of our core recoverable resources. It is also one of the next key steps in furthering our industry leading knowledge of the Kimmeridge limestone play that lies beneath our extensive acreage holding in the Weald. We look forward to further engaging with stakeholders and to a successful planning outcome."

 

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 / Jason Berry                                                             Tel: 020 7440 0640

 

WH Ireland (Nominated Adviser and Broker)

James Joyce / James Bavister                                                                     Tel: 020 7220 1666

 

Square 1 Consulting (Public Relations)

David Bick / Brian Alexander                                                                      Tel: 020 7929 5599

 

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

extended production test

a flow test, or extended well test, as per the permission granted by the Oil and Gas Authority, with an aggregate flow period duration over all zones of greater than 96 hours and up to 90 days maximum

sidetrack

re-entry of a well from the well's surface location with drilling equipment for the purpose of deviating from the existing well bore to achieve production or well data from an alternative zone or bottom hole location, or to remedy an engineering problem encountered in the existing well bore.

 

Notes to Editors:

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, expected 2017 spud date.

Brockham 1

PL235

3.3%

Angus Energy 6

Angus Energy 6

8.9

EA permission requested for drilling of B-4x sidetrack

Holmwood 3

PEDL143

30%

UKOG

Europa Oil & Gas (Holdings) plc

91.8

Holmwood-1 exploration well spud expected 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 2 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 1

PL241

4.2%

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 6% interest in Angus Energy, which has a 70% interest in Lidsey and a 55% interest in Brockham.

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


This information is provided by RNS
The company news service from the London Stock Exchange
 
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