For Immediate Release
4 March 2014
UK Oil & Gas Investments Plc
("UKOG" or the "Company")
Update on Investment
Work commences on Horse Hill-1 well in the UK Weald Basin
UKOG is pleased to announce that it has been informed by the operator that civil works have now commenced on the Horse Hill site in the UK Weald Basin in preparation for the drilling of the proposed 2,646 metre (8,680 feet) Horse Hill -1 well on the Horse Hill Prospect, which lies about 3km from Gatwick Airport and is designed to test a number of promising conventional oil and gas targets.
The Horse Hill-1 well, which is scheduled to be completed by the end of August 2014, is planned to test several conventional stacked oil targets at the proven productive Portland sandstone, Corallian sandstone and Great Oolite limestone levels in the well-defined Horse Hill Prospect. Gross prospective recoverable resources in these stratigraphic levels totalling a mean 87 million barrels ("mmbbls") have been estimated by the previous operator Magellan Petroleum Corporation. An additional mean 164 billion cubic feet ("bcf") of gross recoverable prospective gas resources were also estimated by Magellan Petroleum within the deeper Triassic play.
David Lenigas, the Company's Chairman, commented:
"The next 6 months should be an exciting time for the Company with not only the planned new side track well at Brockham next month and the new Lidsey-2 well after that, but with the drilling of the Horse Hill-1 well, one of the deepest wells to be drilled in the Weald Basin."
"Horse Hill has significant potential to discover oil, especially after the results of Esso in the 1960's, but the Company particularly excited about the potentially of locating significant convention gas deeper down the Horse Hill-1 well in the Triassic."
UKOG has a binding agreement in place to own a 7.5% interest in Horse Hill Development Ltd ("HHDL"), a special purpose company, which now owns a 65% participating interest and operatorship of onshore licence PEDL137 ("Horse Hill") in the UK Weald Basin. In addition, UKOG has a binding agreement to own a 6% interest in Angus Energy Limited ("Angus Energy") which owns 65% of HHDL. Both agreements should be finalised this month.
Horse Hill Wood Prospect:
The participants in the Horse Hill-1 well are HHDL with 65% and operator and Magellan Petroleum Corporation with a 35% interest.
As previously reported on 20 December 2013 (see hereafter), the 99.29 square kilometres (24,525 acre) Exploration and Development Licence No. 137 ("PEDL 137") is located in the Weald Basin in Surrey.
The Horse Hill Wood prospect lies about 3 kilometres from Gatwick Airport and covers an area of up to 16 square kilometres in the south-west of PEDL 137. The trap is a seismically defined tilted horst structure, similar to the Palmers Wood oil field which lies only about 20 kilometres to the north-east. The Collendean Farm-1 well, drilled by ESSO in 1964, lies on the north-eastern edge of the Horse Hill Wood structure and found good oil shows at various Jurassic levels. Recent seismic re-interpretation suggests that the Collendean Farm-1 well was drilled off structure on the downthrown side of the bounding fault and outside closure.
The Triassic reservoir has yet to be tested in this part of the Weald Basin and if present is likely to be gas charged.
The Horse Hill Wood Prospect's OIP and GIP and Gross Prospective Resources estimated by Magellan are summarised in Table 1 below.
Table 1: Horse Hill Prospect estimated OOIP, OGIP and Prospective Resources.
|
Target Reservoir Oil |
OIP Upside Potential (mmbbls) |
OIP Mean (mmbbls) |
Prospective Resources Mean (mmbbls) |
|
Upper Portland Sandstone |
116 |
57 |
17 |
|
Lower Portland Sandstone |
284 |
147 |
44 |
|
Corallian Sandstone |
67 |
33 |
10 |
|
Greater Oolite Limestone |
204 |
104 |
16 |
|
Total Oil |
671 |
341 |
87 |
|
|
|
|
|
|
Target Reservoir Gas |
GIP Upside Potential (bcf) |
GIP Mean (bcf) |
Prospective Resources Mean (bcf) |
|
Triassic Sandstone |
456 |
234 |
164 |
Competent Person's Statement:
The information contained in this report has been prepared by Magellan Petroleum (UK) Limited, and has been reviewed and signed off by Mr Mervyn Cowie BSc (Geology & Mineralogy), who has over 35 years' experience as a geologist. Mr Cowie is a Fellow of the Australian Institute of Mining and Metallurgy and is a competent person under Australian Stock Exchange Rules. The technical disclosure in this report complies with the SPE-PRMS standard.
Glossary:
MMSTB - million stock barrels
Bcf - billion cubic feet
OOIP - Original Oil in Place
OGIP - Original Gas in Place
Prospective Resources - Prospective resources are estimated volumes associated with undiscovered accumulations. These represent quantities of petroleum which are estimated, as of a given date, to be potentially recoverable from oil and gas deposits identified on the basis of indirect evidence but which have not yet been drilled. This class represents a higher risk than contingent resources since the risk of discovery is also added. For prospective resources to become classified as contingent resources, hydrocarbons must be discovered, the accumulations must be further evaluated and an estimate of quantities that would be recoverable under appropriate development projects prepared.
-END-
For further information, please contact:
|
UK Oil& Gas Investments PLC |
Tel: 020 7440 0640 |
|
David Lenigas / Donald Strang |
|
|
Beaumont Cornish (Nominated Adviser) |
Tel: 020 7628 3396 |
|
Roland Cornish / Michael Cornish / Emily Staples |
|
|
XCAP Securities PLC (Corporate Broker) |
Tel: 020 7101 7070 |
|
David Lawman Square 1 Consulting (Public Relations) David Bick/Mark Longson |
Tel: 020 7929 5599 |