UK Oil & Gas PLC
("UKOG" or the "Company")
Turkey: Pinarova-1 oil shows & testing
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that after drilling ahead within the target Eocene Hoya limestone sequence, Pinarova-1 encountered oil shows in drill cuttings from 358 to 400 metres drilled depth. The onset of oil shows also corresponds with observed drilling fluid losses, potentially indicating permeability development within the Hoya reservoir. Given these encouraging observations, it has been decided to conduct open hole swabbed flow testing over the zone between 293 and 400 metres drilled depth. Preparations for testing operations are underway.
Following testing operations, which are expected to run over the coming weekend, drilling is planned to continue through the underlying zone lying coincident with the uppermost and strongest seismic amplitude anomaly observed within Pinarova's core. As per the Company's RNS of 11th January 2023, the seismic anomaly may indicate the presence of moveable hydrocarbons and or good Hoya reservoir development and is therefore a key drilling and testing objective.
Pinarova-1, located 6 km north of the Basur-1 oil discovery, is 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, lying between c. 300-645 metres below surface.
It should be noted that the end of Ramadan, Eid al Fitr, occurs tonight, Friday 21st April 2023, and may affect operational timings over the coming weekend.
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: 01483 941493 | |
| WH Ireland Ltd (Nominated Adviser and Broker) |
| |
| James Joyce / Andrew de Andrade/James Bavister
| Tel: 020 7220 1666
| |
| Communications |
| |
| Brian Alexander | Tel: 01483 941493 | |
| | | |
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 er chips of rock of a few millimetres or smaller diameter that are produced from the cutting and grinding action of the drill bit 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 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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