TIDMUKOG
RNS Number : 4515G
UK Oil & Gas Investments PLC
05 August 2016
UK Oil & Gas Investments PLC
("UKOG" or the "Company")
Pre-completion of acquisition of 100% interest in 300 sq km
License in the Weald Kimmeridge Limestone Oil Province (PEDL234)
and a 22.5% interest in the Isle of Wight licence P1916 (taking
UKOG's interest to 100%)
As announced on 13 June 2016 UK Oil & Gas Investments PLC
(London AIM and ISDX: UKOG) entered into agreements with Celtique
Energie Petroleum Limited and Magellan Petroleum (UK) Limited
respectively to acquire 100% ownership of PEDL234, the 300 sq km
(116 sq miles) licence in the Weald Basin, and a 22.5% interest in
the Isle of Wight licence P1916 (the "Licences"). The announcement
can be found at
http://irpages2.equitystory.com/websites/rns_news/English/1100/news-tool---rns---eqs-group.html?article=24532272&company=ukog
UKOG is pleased to report that the two-year extension of PEDL234
and the normal regulatory approvals for the Licences have been
granted by the Oil and Gas Authority and, as such, the
pre-conditions to the agreements have been met.
As part of the consideration payable under the PEDL234
agreements, UKOG has applied for the admission to trading on AIM
and the ISDX Growth Market of 142,648, 831 new ordinary shares
("New Shares") in the Company. Trading of the New Shares is
expected to commence on or around 11 August 2016 ("Admission").
Following Admission, the Company's issued share capital will
consist of 2,496,652,300 ordinary shares ("Ordinary Shares"), with
no Ordinary Shares held in treasury. Therefore, shareholders may
use the above figure of 2,496,652,300 Ordinary Shares as the
denominator for the calculations by which they will determine if
they are required to notify their interest, or a change to their
interest, in UKOG under the FCA's Disclosure and Transparency
Rules.
The Company will confirm once these New Shares have been
admitted, which will complete the transaction.
About the Licence
The acquisition of PEDL234 more than doubles the Company's net
acreage holdings in the prime Kimmeridge Limestone Oil province, as
proven by the Horse Hill-1 ("HH-1") oil discovery which, as
reported on 21 March 2016, tested at a commercial aggregate stable
dry oil flow rate of 1,688 barrels of oil per day from the
Kimmeridge Limestones and Portland section. Importantly, the
PEDL234 licence includes regulatory permission to drill the
Kimmeridge at the Broadford Bridge-1 site. Furthermore, PEDL234
contains a further mapped gas appraisal opportunity, in the eastern
extension of the Godley Bridge Portland gas discovery.
Stephen Sanderson, UKOG's Executive Chairman, commented:
"This is an important step for the Company, making UKOG the
leading player and acreage holder in Kimmeridge oil and a
significant player in the UK onshore oil industry. It fits
perfectly into our overall 2-year strategy to de-risk and push the
Kimmeridge play to the point of commercial development. We are on a
very exciting journey."
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
---------- ---------------------------------------------------------
flow test a flow test or well test involves testing a well
by flowing hydrocarbons to the surface, typically
through a test separator. Key measured parameters
are oil and gas flow rates, downhole pressure
and surface pressure. The overall objective is
to identify the well's capacity to produce hydrocarbons
at a commercial flow rate
---------- ---------------------------------------------------------
limestone a sedimentary rock predominantly composed of calcite
(a crystalline mineral form of calcium carbonate)
of organic, chemical or detrital origin. Minor
amounts of dolomite, chert and clay are common
in limestones. Chalk is a form of fine-grained
limestone. The Kimmeridge Limestones are effectively
chalks being comprised of the remains of calcareous
planktonic algae.
---------- ---------------------------------------------------------
The Company has interests in the following UK licences:
Asset Licence UKOG's Licence Holder Operator Area Status
Interest (km(2)
)
--------- ---------- --------------- ------------------ -------- ----------------------
Avington UKOG (GB) IGas Energy Field in stable
(1) PEDL070 5% Limited Plc 18.3 production.
------------------ --------- ---------- --------------- ------------------ -------- ----------------------
Reviewing economics
of appraisal/
Baxters UKOG Weald IGas Energy development
Copse (2) PEDL233 50% Limited Plc 89.6 well.
------------------ --------- ---------- --------------- ------------------ -------- ----------------------
Kimmeridge Kimmeridge BB-1 well permitted;
Broadford Oil & Gas Oil & Gas expected 2017
Bridge PEDL234 100%(7) Limited Limited 300.0 spud date.
------------------ --------- ---------- --------------- ------------------ -------- ----------------------
Drilling of
Brockham Angus Energy Angus Energy sidetrack well
(1) PL234 3.6% (5) (5) 8.9 being considered.
------------------ --------- ---------- --------------- ------------------ -------- ----------------------
Europa Oil H-1 exploration
Holmwood & Gas (Holdings) commitment
(3) PEDL143 30% UKOG plc 91.8 well planned.
------------------ --------- ---------- --------------- ------------------ -------- ----------------------
Horndean UKOG (GB) IGas Energy Field in stable
(1) PL211 10% Limited Plc 27.3 production.
------------------ --------- ---------- --------------- ------------------ -------- ----------------------
Horse Hill Horse Hill Extended flow
Horse Hill Developments Developments testing of
(4) PEDL137 31.2% Ltd (6) Ltd (6) 99.3 HH-1.
-------- ----------------------
Horse Hill Horse Hill Extended flow
Horse Hill Developments Developments testing of
(4) PEDL246 31.2% Ltd (6) Ltd (6) 43.6 HH-1.
------------------ --------- ---------- --------------- ------------------ -------- ----------------------
Isle of
Wight (Offshore) UKOG Solent UKOG Solent Preparing drilling
(3) P1916 100%(7) Limited Limited 46.7 planning submission.
------------------
Isle of
Wight (Onshore) Preparing drilling
(2, 3) PEDL331 65% UKOG TBA 200.0 planning submission.
------------------ --------- ---------- --------------- ------------------ -------- ----------------------
Drilling of
Angus Energy Angus Energy infill well
Lidsey (1) PL241 4.2% (5) (5) 5.3 being considered.
------------------ --------- ---------- --------------- ------------------ -------- ----------------------
Compiling Field
Markwells UKOG (GB) UKOG (GB) Development
Wood (2) PEDL126 100% Limited Limited 11.2 Plan.
------------------ --------- ---------- --------------- ------------------ -------- ----------------------
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. Oil discovery with recently completed flow testing.
5. UKOG has a 6% interest in Angus Energy, which has a 70%
interest in Lidsey and a 60% interest in Brockham.
6. UKOG has a 48% interest in HHDL; HHDL has a 65% interest in
PEDL137 and PEDL246.
7. On completion of the acquisitions mentioned above in respect
of PEDL234 and P1916.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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