UK Oil & Gas Investments PLC Drilling Update (5306I)
20 June 2017 - 4:00PM
UK Regulatory
TIDMUKOG
RNS Number : 5306I
UK Oil & Gas Investments PLC
20 June 2017
UK Oil & Gas Investments PLC
("UKOG" or the "Company")
Drilling Update at 100% Owned Broadford Bridge-1 Kimmeridge
Exploration Well
PEDL234 Licence, Weald Basin, UK
UK Oil & Gas Investments PLC (London AIM and NEX: UKOG)
announces that it has now commenced conventional coring operations
at its 100% interest Broadford Bridge-1 ("BB-1") exploration well.
The first coring point was called at a measured depth of 4013 feet
(1223 metres) situated just above Kimmeridge Limestone 4 ("KL4"),
the first reservoir target. Downhole natural gas levels increased
steadily throughout the Kimmeridge section, with the onset of wet
gas shows (butane and pentane) just above the coring point. When
recovered to surface, the 100 ft cores will be transported to
Aberdeen for initial rock sampling. Extensive geological,
petrophysical and geo-mechanical analyses will be carried out in
the UK and USA. BB-1 remains under budget and on schedule.
About BB-1
BB-1 is located near Billingshurst, West Sussex, within the 300
km(2) PEDL234 licence, in which the Company has a 100% interest via
its ownership of the licence's operator, Kimmeridge Oil & Gas
Limited. The well, an exploration step-out, is designed to
penetrate four naturally fractured Kimmeridge Limestone units
(KL1-KL4), the uppermost two units of which flowed at record rates
in the Company's Horse Hill-1 discovery near Gatwick Airport.
The forward plan is to core the KL4 and KL3 target zones and
then continue to drill 8 1/2 diameter hole at a constant
inclination of 54 degrees to vertical. Further core may be taken in
KL2. The well azimuth, approximately north-northeast of the well
site, is designed to be at approximately 90 degrees to the
predicted orientation of open natural fractures in the KL1-KL4
reservoir section. The planned overall horizontal deviation of the
well is approximately 1 km. The Kimmeridge Limestones are expected
to be encountered at a drilled depth of approximately 1250-1700
metres, which equates to around 950-1200 metres vertically below
surface.
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 / Kiran Morzaria Tel: 01483 243450
WH Ireland (Nominated Adviser and Broker)
James Joyce / James Bavister Tel: 020 7220 1666
Cenkos Securities PLC (Joint Broker)
Nick Tulloch / Neil McDonald Tel: 0131 220 6939
Square 1 Consulting (Public Relations)
Brian Alexander / David Bick Tel: 01483 243450 / 020 7929
5599
Glossary:
casing heavy gauge steel tubing designed
to line the wall of a well. The
casing provides a safe controlled
space in which the drill pipe and
bit can operate in isolation from
conditions in overlying rock units.
The steel tubing is bonded to the
surrounding rock by impermeable
concrete, known as "cement".
--------------- ------------------------------------------
core or coring a drilling technique that involves
using a doughnut-shaped drilling
bit to capture or "cut" a continuous
cylinder-shaped core of undamaged
in-situ rock. The core is captured
in a steel pipe or "core barrel"
above the bit. Core is normally
cut in 30 feet lengths, or multiples
of 30 feet, and normally with a
diameter of 3.5 or 4 inches. Core
is taken in petroleum reservoir
rocks for detailed laboratory analyses
of petrophysical and geomechanical
parameters.
--------------- ------------------------------------------
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
--------------- ------------------------------------------
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
--------------- ------------------------------------------
naturally a fractured reservoir contains
fractured open and usually connected cracks
reservoir or fissures within the rock matrix;
fractures can enhance permeability
of rocks greatly by connecting
pore-spaces together; naturally
fractured reservoirs have been
created over geological time by
nature, not man-made via hydraulic
fracturing
--------------- ------------------------------------------
step-out well a well specifically designed to
determine the lateral extent of
a discovered hydrocarbon accumulation
or play.
--------------- ------------------------------------------
wet gas natural gas, predominantly consisting
of methane(C1), ethane(C2) and
propane (C3) but also containing
the longer molecular chain natural
gases butane & iso butane (C4),
pentane & iso-pentane (C5). The
C4 and C5 gases are created during
oil-generation within a petroleum
source rock unit when oil is thermally
cracked. At Horse Hill these natural
gases lie in solution with the
oil in the KL3 and KL4 Kimmeridge
Limestone reservoirs (i.e. solution
or associated gas and not as a
separate free-gas phase).
--------------- ------------------------------------------
UKOG Licence Interests
The Company has interests in the following ten UK licences:
Asset Licence UKOG's Licence Holder Operator Area (km(2) ) Status
Interest
---------------- --------- --------------- --------------- --------------- -------------- ----------------------
UKOG (GB) IGas Energy Field in stable
Avington (1) PEDL070 5% Limited Plc 18.3 production
---------------- --------- --------------- --------------- --------------- -------------- ----------------------
Baxters Copse PEDL233 50% UKOG Weald IGas Energy 89.6 Appraisal/development
(2) Limited Plc well planned; licence
extended to 2018
---------------- --------- --------------- --------------- --------------- -------------- ----------------------
Kimmeridge Oil Kimmeridge Oil
Broadford Bridge & Gas Limited & Gas Limited BB-1 drilling
(3) PEDL234 100% (4) (4) 300.0 underway
---------------- --------- --------------- --------------- --------------- -------------- ----------------------
Holmwood (3) PEDL143 30% UKOG Europa Oil & 91.8 Holmwood-1
Gas (Holdings) exploration well
plc planned in 2017
---------------- --------- --------------- --------------- --------------- -------------- ----------------------
UKOG (GB) IGas Energy Field in stable
Horndean (1) PL211 10% Limited Plc 27.3 production
---------------- --------- --------------- --------------- --------------- -------------- ----------------------
Horse Hill (5) PEDL137 31.2% Horse Hill Horse Hill 99.3 Submitted planning
Developments Developments application for long
Ltd Ltd term production tests
and drilling of two
wells
---------------- --------- --------------- --------------- --------------- -------------- ----------------------
Horse Hill Horse Hill
Developments Developments
Horse Hill (5) PEDL246 31.2% Ltd Ltd 43.6 As above
---------------- --------- --------------- --------------- --------------- -------------- ----------------------
Isle of Wight UKOG Solent UKOG Solent Preparing drilling
(Offshore) (3) P1916 100% Limited Limited 46.7 planning submission
----------------
Isle of Wight
(Onshore) (2, Preparing drilling
3) PEDL331 65% UKOG TBA 200.0 planning submission
---------------- --------- --------------- --------------- --------------- -------------- ----------------------
Markwells Wood PEDL126 100% UKOG (GB) UKOG (GB) 11.2 Submitted planning
(2) Limited Limited 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.
Contains the extension of the Godley Bridge Portland gas discovery
and the site of the forthcoming Broadford Bridge-1 well.
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 direct 48% interest in HHDL, which has a 65%
interest in PEDL137 and PEDL246.
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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