Update on UK onshore oil investments
For Immediate Release
16 May 2014
UK Oil & Gas Investments PLC
("UKOG" or the "Company")
Update on UK onshore oil investments.
UKOG (AIM: UKOG) today announces that Angus Energy Limited ("Angus Energy") as operator of the Horse Hill Prospect in the Weald Basin near Gatwick Airport, has advised that the proposed Horse Hill-1 well is on schedule for a spud date in July 2014. In addition, Angus Energy, as major shareholder and operator, has provided the following update on its onshore producing Brockham and Lidsey Oil Fields in the Weald Basin south of London.
On the 3 February 2014, UKOG announced it had signed a deal to acquire a 6% interest in Angus Energy. This transaction has now been completed.
David Lenigas, the Company's Chairman, commented:
"UKOG is please with the progress being made to spud this exciting well in the Weald Basin south of London. There is still a great deal of work to be done by the operator with respect to finalising contracts and final permits to drill, however we are optimistic that the planned July spud date is realistic."
Horse Hill Prospect:
Angus Energy, the major shareholder of Horse Hill Development Ltd ("HHDL") and operator of the Horse Hill Petroleum Exploration and Development Licence No. 137 (PEDL 137) located in Surrey, have provided the following update on the proposed Horse Hill-1 well planned for completion by the end of August 2014.
· All tenders are now out for the site construction and long lead items for the well.
· The contracts for the drill rig and key service providers are in the final stages of negotiation.
· Permitting is currently on track for a spud date in July 2014.
· The depth of Horse Hill-1 well has been set to 8,512 feet to test conventional stacked oil and gas targets.
UKOG has a binding agreement in place to own a direct 7.5% interest in Horse Hill Development Ltd ("HHDL"), a special purpose company that owns a 65% participating interest and operatorship of the Horse Hill and an additional interest by virtue of it's 6% ownership in the License's operator, Angus Energy.
As previously announced on the 20 December 2013, the Horse Hill-1 well is designed to test a number of conventional stacked oil and gas targets which the board believes could contain up to an estimated 671 million stock barrels ("MMSTB") oil in place with an estimated total mean recoverable prospective resources of 87 MMSTB and additional prospectivity of 456 Bcf gas in place (Mean 164+ Bcf recoverable prospective resource) in the proposed Triassic gas play.
Brockham Oil Field (80% owned and operated by Angus Energy):
The Brockham Oil Field ("Brockham"), in the Weald Basin, is held under United Kingdom Production Licence PL 235. Oil production was recently increased from 42 bopd to 84 bopd after a successful work-over programme in January 2014 and production has only slightly tapered off to its current levels of about [65-67] bopd. Brockham's 28 API oil is regularly trucked and sold to the Perenco Refinery.
The planned 450 metre side-track well at Brockham, designed to increase overall production from the Field, as previously announced on the 1st April, has been temporarily delayed by up to 13 weeks due to the UK Environmental Agency having recently requested Angus Energy must apply for a new mining waste permit. Applications for this are due to be submitted shortly.
An appropriate drill rig is on standby to undertake this side-track well, and is planned to mobilise to site once the new mining waste permit has been issued.
In preparation for the expected increase in oil production, post the side-track, Angus have now completed the refurbishment of 1,200-barrel storage tank facilities.
In March 2014, the Company announced that RPS Energy Consultants Limited ("RPS") had independently assessed that, as at 31 December 2013, the Brockham Field contains 3.62 million barrels (gross) Oil in-place (P50 best case).
Lidsey Oil Field (70% owned and operated by Angus Energy):
The Lidsey Oil Field ("Lidsey"), in the Weald Basin, is held under United Kingdom Production Licence PL 241. Oil production was 25 bopd, prior to a re-completion programme back in November and December 2013, which resulted in a temporary boost in oil production. Production has steadily declined to [34-38] bopd and Angus Energy have now formally advised the partners in Lidsey that a new re-completion is being planned in order to again increase production. Applications are now being prepared for the UK Health and Safety Executive to re-perforate virgin oil zones in the Lidsey-1 well and this work will take place once final approvals have been granted.
Lidsey has a fully permitted and operation 2,000-barrel storage facility and its 38 API oil is regularly trucked and sold to the Perenco Oil Refinery.
In March 2014, UKOG announced that RPS had independently assessed that, as at 31 December 2013, the Lidsey Field contained 9.52 million barrels (gross) of P50 best case Oil In-Place. In addition, Angus Energy had advised that the drilling of the new Lidsey-2 well was to be drilled during April and May 2014. The drilling of this new Lidsey-2 well has been postponed until after the Lidsey-1 well re-completion.
Eakring-Dukes Wood and Kirklington Licences:
The Company has formally advised Angus Energy that it no longer wishes to proceed with the £290,000 transaction to acquire the 10% interests in onshore UK Petroleum Exploration and Development Licences ("PEDLs") PEDL 118 and PEDL 203 located in Nottinghamshire in the East Midlands Petroleum Province. After a fully technical review, these minority interests in the Eakring-Dukes Wood and Kirklington Licences were deemed too early stage for UKOG and the board is more focused towards near term drilling and production opportunities in the UK.
Glossary:
|
Prospective Resources
|
those quantities of petroleum which are estimated, at a given date, to be potentially recoverable from undiscovered accumulations |
|
oil-in-place/OIP |
the volume of oil estimated to be in place |
|
gas-in-place/GIP |
the volume of gas estimated to be in place
|
For further information, please contact:
|
UK Oil& Gas Investments PLC David Lenigas / Donald Strang |
Tel: 020 7440 0640 |
|
Beaumont Cornish (Nominated Adviser) Roland Cornish / Michael Cornish |
Tel: 020 7628 3396 |
|
Hume Capital Securities PLC (Corporate Broker) David Lawman |
Tel: 020 7101 7070 |
|
Square 1 Consulting (Public Relations) David Bick/Mark Longson |
Tel: 020 7929 5599 |
-ENDS-
This information is provided by RNS
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