UK Oil & Gas Investments PLC

("UKOG" or the "Company")

Impact of Kimmeridge Limestone Oil on UK Economy: EY Report ("the Report")

UK Oil & Gas Investments PLC (London AIM and ISDX: UKOG) has today released a commissioned Report, authored by EY, a global leader in assurance, tax, transaction and advisory services, which assesses the economic impact and benefits of future Kimmeridge Limestone oil production projects over the Weald Basin. The Report highlights the significant positive contribution to the UK economy, jobs and energy security that could result from this new potential oil production. EY's analysis builds on the recent highly successful oil flow tests from the Kimmeridge Limestones at the Horse Hill-1 ("HH-1") oil discovery, in which the Company has a 27.3% interest.

It should be noted that the Report is solely in relation to the potential extraction of oil from the two main Kimmeridge Limestones over the entire Weald Basin and is not an assessment of the Company's own 11 individual licence interests in the Weald.

Kimmeridge Limestone Oil - Economic Impact Highlights:

· Future peak oil production could provide approximately 4% to 27% of 2014 UK daily oil demand over the life of the project

· The Gross Value Added to the UK economy could range from £7.1 billion to £52.6 billion

· Generation of between approximately 1,000 to 5,600 jobs in the UK, averaged over the project's lifetime

· Lifetime tax revenues of between £2.1 billion to £18.1 billion

The Report:

Over the past decade, North Sea production has declined to the point where the UK is forecast to import over 50% of its daily oil demand by 2020. In this context, and following the HH-1 flow tests, EY have now produced a detailed analysis of how the extraction of oil from the Kimmeridge Limestones in the Weald could help arrest the decline of indigenous oil production and strengthen the UK's long-term energy security.

EY's economic impact forecasts utilised the Company's internal assumptions on production rates for a multiple horizontal well production site, together with Xodus Group's conceptual multi-well site development study and Nutech's calculated oil in the ground and likely oil recovery factors. These external studies were previously reported by the Company. The assumptions on individual production well performance were made prior to the unexpectedly high HH-1 flow test results, as first announced on 16 February 2016.

The EY Report states:

"The development of Kimmeridge Limestone Oil in the Weald Basin, assuming it can be extracted from a development site at the volumes projected by UKOG, has the potential to generate significant economic value to the UK economy, partially off-set the decline in oil production from UK fields, support employment, and generate significant tax benefits to the exchequer.

"These benefits will be maximised via the development of a UK-based supply chain, and through a series of targeted policies and initiatives to appropriately mitigate potential barriers to development.

"Conceptual studies and oil in place estimates previously conducted suggest a significant opportunity for the UK to secure a proportion of its energy from the Weald Basin."

Click here http://www.rns-pdf.londonstockexchange.com/rns/4442V_-2016-4-17.pdf to view the full EY Report.

Stephen Sanderson, UKOG's Executive Chairman commented:

"This Report confirms UKOG's view that the development of Kimmeridge Limestone oil in the Weald Basin can make a very significant contribution to the economy, employment and energy security of the UK.

The Report's conclusions are given credence by the recent results of the highly successful Kimmeridge Limestone flow tests at the Horse Hill-1 oil discovery. The tests demonstrate that significant volumes of high-quality light oil exists within the Kimmeridge Limestones and can flow naturally to surface at commercial rates.

The unexpectedly high aggregate flow rate of over 1365 barrels per day ("bopd") from Horse Hill's two Kimmeridge Limestones far exceeds the study's modelled peak flow rate of 400 bopd per horizontal well. It is, therefore, possible that the overall economic impact of Kimmeridge Limestone oil could be significantly higher than this initial Report describes."

The full EY Report and a summary Infographic are available on the Company's website: at www.ukogplc.com.

About EY:

EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services delivered help build trust and confidence in the capital markets and in economies the world over.

EY develops outstanding leaders who team to deliver on promises to all of its stakeholders. In so doing, EY plays a critical role in building a better working world for its people, for clients and for communities.

EY refers to the global organisation and may refer to one or more of the member firms of Ernst & Young Global Limited.

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 / Mark Leonard 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 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
Gross Value Added	or GVA, the contribution of each individual producer, industry or sector to the economy; the GVA of an economy is its GDP (Gross Domestic Product) adjusted for taxes and subsidies
horizontal well	a well that during drilling is steered so as to be at or close to 90 degrees from the vertical to follow a particular geological stratum or reservoir unit
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
moveable oil	oil that can flow or be pumped to the surface
oil in the ground	or oil in place, the quantity of oil or petroleum that is estimated to exist originally in naturally occurring accumulations in the ground before any extraction or production.

Notes to Editors:

The Company has interests in the following UK licences:

Asset	Licence	UKOG's Interest	Licence Holder	Operator	Area (km²)	Status
Avington ¹	PEDL070	5%	UKOG (GB) Limited	IGas Energy Plc	18.3	Field in stable production.
Baxters Copse ²	PEDL233	50%	UKOG Weald Limited	IGas Energy Plc	89.6	Reviewing economics of appraisal/ development well.
Brockham ¹	PL234	3.6%	Angus Energy ⁵	Angus Energy ⁵	8.9	Drilling of sidetrack well being considered.
Holmwood ³	PEDL143	30%	UKOG	Europa Oil & Gas (Holdings) plc	91.8	H-1 exploration commitment well planned.
Horndean ¹	PL211	10%	UKOG (GB) Limited	IGas Energy Plc	27.3	Field in stable production.
Horse Hill ⁴	PEDL137	27.3%	Horse Hill Developments Ltd ⁶	Horse Hill Developments Ltd ⁶	99.3	Extended flow testing of HH-1.
Horse Hill ⁴	PEDL246	27.3%	Horse Hill Developments Ltd ⁶	Horse Hill Developments Ltd ⁶	43.6	Extended flow testing of HH-1.
Isle of Wight (Offshore) ³	P1916	77.5%	UKOG Solent Limited	UKOG Solent Limited	46.7	Preparing drilling planning submission.
Isle of Wight (Onshore) ^{2, 3}	PEDL331	65%	UKOG	TBA	200.0	Preparing drilling planning submission.
Lidsey ¹	PL241	4.2%	Angus Energy ⁵	Angus Energy ⁵	5.3	Drilling of infill well being considered.
Markwells Wood ²	PEDL126	100%	UKOG (GB) Limited	UKOG (GB) Limited	11.2	Compiling Field Development 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 direct 30% interest in HHDL, plus an indirect 0.72% interest via Angus Energy; HHDL has a 65% interest in PEDL137 and PEDL246.