TIDMUKOG
RNS Number : 7222R
UK Oil & Gas Investments PLC
25 September 2017
UK Oil & Gas Investments PLC
("UKOG" or the "Company")
Acquisition of a Further Interest in Onshore Licence
PEDL143,
Holmwood-1 Kimmeridge & Portland Exploration Prospect, Weald
Basin, UK
UK Oil & Gas Investments PLC (London AIM: UKOG) is pleased
to announce that it has agreed to acquire a further 10% interest in
Licence PEDL143 ("the Licence") from Warwick Energy Exploration and
Production Limited ("Warwick"). Upon completion, the Company will
hold a 40% interest in the Licence, which is currently operated by
Europa Oil & Gas Limited.
The Licence, covering an area of 91.8 km(2) , contains the
Holmwood prospect, which provides a near -term opportunity to test
Kimmeridge, Portland and Corallian reservoir targets lying within a
look-alike geological feature to both the Company's Horse Hill-1
("HH-1") oil discovery, located some 8.5 km to the east, and the
Broadford Bridge-1 and 1z discovery located some 24 km to the
south. As previously reported on 21 March 2016, HH-1 flow tested at
a significant commercial aggregate stable dry oil rate of 1,688
barrels of oil per day from the two uppermost Kimmeridge Limestone
units and the overlying Portland.
Planning consent from Surrey County Council is in place to drill
and flow test the Holmwood-1 exploration well, which is now
scheduled for the coming winter season.
Transaction Summary
For a Purchase Price of GBP750,000, the Company will receive
Warwick's 10% working interest in the Licence. The total Purchase
Price is payable via the issue to Warwick of 9,382,271 new ordinary
shares in UKOG with an effective date of 22 September 2017.
Completion of the acquisition is conditional upon the Oil and Gas
Authority's usual regulatory consent. Upon completion, the
Company's Holmwood-1 farmout obligation to Warwick will cease.
A further announcement will be made upon completion.
Stephen Sanderson, UKOG's Executive Chairman, commented:
"This acquisition is another step in UKOG's strategy to further
consolidate and increase its holdings in the Kimmeridge oil play.
The forthcoming Holmwood well provides a valuable near-term
opportunity to test a geological look-alike of both our Broadford
Bridge and Horse Hill oil discoveries, and which can hopefully
provide further proof of the new Kimmeridge play concept. The
significant overlying Portland target also provides additional
low-risk potential reserve upside. We look forward to the well's
spud in the coming winter and the valuable information it will
provide for our quest to monetise the Company's Kimmeridge and
Portland oil."
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
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 test period where hydrocarbons are
flowed to surface 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 oil at a commercial
flow rate and to recover oil in commercial
quantities or volumes
---------- ---------------------------------------------
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,
being made of the remains of calcareous
planktonic algae called coccoliths.
The Kimmeridge Limestones are comprised
of fine grained coccoliths, fine grained
calcium carbonate mud, clay minerals,
together with dark grey organic matter.
---------- ---------------------------------------------
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
---------------- --------- --------------- --------------- --------------- -------------- ----------------------
Broadford Bridge PEDL234 100% Kimmeridge Oil Kimmeridge Oil 300.0 BB-1&1z drilling
(3) & Gas Limited & Gas Limited completed testing
(4) (4) underway
---------------- --------- --------------- --------------- --------------- -------------- ----------------------
Holmwood (3) PEDL143 40% 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 32.435% 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 32.435% 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 Broadford Bridge-1 and 1z discovery well and the
extension of the Godley Bridge Portland gas discovery.
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 49.9% 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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