For immediate release
13 March, 2014
UK Oil & Gas Investments PLC
("UKOG" or the "Company")
Reserves and Resources Statements for the Lidsey and Brockham Oil Fields, UK
UKOG (AIM: UKOG) today announces the conclusions of the independent reserve and resource reports ("CPRs") prepared by RPS Energy Consultants Limited ("RPS") for both the Lidsey and Brockham Fields in the Weald Basin, UK for the operator Angus Energy Ltd ("Angus Energy" or "Angus").
UKOG has an interest in the both fields by way of a 6% ownership interest in UK conventional oil producer Angus Energy which owns 70% of the Lidsey Field and 80% of the Brockham Field.
Highlights:
· Lidsey Field (70% owned and operated by Angus Energy)
o oil in-place P50 best case of 9.52 MMstb (gross)
o 2P reserves of 36.0 Mstb (gross)
o 2C contingent resources of 413.6 MMstb (gross)
· Brockham Field (80% owned and operated by Angus Energy)
o Oil in-place P50 best case of 3.62 MMstb (gross)
o 2P reserves of 47.0 Mstb (gross)
The CPRs calculate the reserves and resources with an effective date of 31 December 2013. A new reserve and resource report will be commissioned after the drilling of the Brockham side-track well, due to start before the end of March, and the drilling of the new Lidsey-2 well to be drilled during April and May 2014.
The gross in-place volumes for the Brockham Field are as previously announced on 28 February 2014.
David Lenigas, the Company's Chairman, commented:
"There is a combined 13 million barrels (gross) of contained oil within these two conventional oil fields south of London and UKOG is anticipating solid production from both the Brockham side-track well and Lidesy-2 well planned for the first half of this year, after which we could expect a significant increase in 2P reserves for the Fields."
Enquiries:
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UK Oil& Gas Investments PLC |
Tel: 020 7440 0640 |
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David Lenigas / Donald Strang |
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Beaumont Cornish (Nominated Adviser) |
Tel: 020 7628 3396 |
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Roland Cornish / Michael Cornish / Emily Staples |
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XCAP Securities PLC (Corporate Broker) |
Tel: 020 7101 7070 |
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David Lawman Square 1 Consulting (Public Relations) David Bick/Mark Longson |
Tel: 020 7929 5599 |
Summary from the RPS CPRs, dated 10 March 2014:
The CPRs calculate the reserves and resources with an effective date of 31 December 2013 and have been prepared in accordance with the SPE (Society of Petroleum Engineers) Standard. The operator of the Lidsey and Brockham Fields is Angus Energy. All reserves and resources are stated for oil and liquids. There are no gas reserves or resources included in the CPRs. The CPRs set out the reserves and resources on a gross basis and a net basis (Angus Energy owns 70% of the Lidsey Field and 80% of the Brockham Field). UKOG has a 6% ownership interest in Angus Energy and therefore an indirect net attributable interest of 4.2% of the Lidsey Field and 4.8% of the Brockham Field.
The following sets out a combined summary of the CPRs prepared by RPS, who have reviewed this announcement and consented to the inclusion of and reference to the combined summary extracted from the CPRs below and the other technical information relating to the Lidsey and Brockham Fields contained in this announcement:
"EVALUATION OF LIDSEY AND BROCKHAM FIELDS, ONSHORE UK
In response to Angus Energy Limited's request of February 2014 and the Letter of Engagement dated 5th February 2014 with Angus Energy Limited (the "Agreement"), RPS Energy Consultants Limited ("RPS") has completed an independent evaluation of liquid hydrocarbons in Licence PL241 in the United Kingdom (the "Properties") in which Angus Energy Limited ("Angus") has an interest.
This report is issued by RPS under the appointment by Angus Energy Limited and is produced as part of the Services detailed therein and subject to the terms and conditions of the Agreement.
This report is addressed to the Company and Third Parties as defined in the Agreement and is only capable of being relied on by the Company and any Third Parties under and pursuant to (and subject to the terms of) the Agreement.
The Company may disclose the signed and dated report to third parties as contemplated by the Purpose defined in the Agreement but in making any such disclosure the Company shall require the third party (including any Sponsor and Third Parties) to accept it as confidential information only to be used or passed on to other persons as the Company is permitted to do under the Agreement.
The report is based on data and information available up to February 28th 2014. An effective date of 31st December 2013 has been assumed for the evaluation.
The Services have been performed by an RPS team of professional petroleum engineers, geoscientists and economists and is based on the Operator's data, supplied through Angus. All Reserves and Resources definitions and estimates shown in this report are based on the 2007 SPE/AAPG/WPC/SPEE Petroleum Resource Management System ("PRMS").
Our approach has been to review the Operator's technical interpretation of their base case geoscience and engineering data for the field for reasonableness and to review the ranges of uncertainty for each parameter around this base case in order to estimate a range of petroleum initially in place and recoverable.
SUMMARY OF RESERVES AND RESOURCES
Lidsey Field
Volumes of hydrocarbons initially in place in the Lidsey field, as of 31 December 2013, that have been estimated by RPS are summarised in Table 1 below:
Table 1: Lidsey Field In Place Volumes, On Block
|
Field |
In-Place Volumes (MMstb) |
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Gross (On Block)1 |
Net Angus Working Interest (On Block) 1,2 |
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Low (P90) |
Best (P50) |
High (P10) |
Low (P90) |
Best (P50) |
High (P10) |
|
|
Lidsey Field |
7.49 |
9.52 |
11.93 |
5.24 |
6.66 |
8.35 |
|
1. 97% of the Lidsey Field lies within Licence PL241 2. Angus Energy working interest in Licence PL241 is 70% |
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Reserves in the Lidsey field as of 31 December 2013 that have been estimated by RPS are summarised in Table 2 below:
Table 2: Lidsey Field Reserves as of 31 December 2013
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Field |
Reserves (Mstb) |
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|
Gross Field |
Net Angus Working Interest |
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|
1P 2 |
2P |
3P |
1P 2 |
2P |
3P |
|
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Lidsey Field 1 |
12.7 |
36.0 |
54.7 |
8.9 |
25.2 |
38.3 |
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1. The Lidsey field lies in Licence PL241. Angus Energy working interest in Licence PL241 is 70% 2. The 1P case has been truncated to the anticipated Licence expiry as published by DECC of 01/12/2017 |
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Contingent Resources in the Lidsey field as of 31 December 2013 that have been estimated by RPS are summarised in Table 3 below:
Table 3: Lidsey Field Contingent Resources
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Field |
Contingent Resources (Mstb)1 |
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Gross Field |
Net Angus Working Interest |
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1C |
2C |
3C |
1C |
2C |
3C |
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Lidsey Field 2 |
195.9 |
413.6 |
620.3 |
137.1 |
289.5 |
434.2 |
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1. No economic cutoff applied. A nominal production cutoff of 6 bopd or 1/1/2033 (whichever earlier) applied with an assumed start date of 1/1/2016. 2. The Lidsey field lies in Licence PL241. Angus Energy working interest in Licence PL241 is 70% |
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Brockham Field
Volumes of hydrocarbons initially in place in the Brockham field, as of 31 December 2013, that have been estimated by RPS are summarised in Table 4 below:
Table 4: Brockham Field In Place Volumes
|
Field |
In-Place Volumes (MMstb) |
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|
Gross |
Net Angus Working Interest 1 |
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|
Low (P90) |
Best (P50) |
High (P10) |
Low (P90) |
Best (P50) |
High (P10) |
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Brockham Field 1 |
1.89 |
3.62 |
5.83 |
1.51 |
2.90 |
4.66 |
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1. The Brockham field lies in Licence PL235. Angus Energy working interest in Licence PL235 is 80% |
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Reserves in the Brockham field as of 31st December 2013 that have been estimated by RPS are summarised in Table 5 below:
Table 5: Brockham Field Reserves as of 31 December 2013
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Field |
Reserves (Mstb) |
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Gross Field |
Angus Working Interest 1 |
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1P 2 |
2P |
3P |
1P 2 |
2P |
3P |
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Brockham Field 1 |
17.9 |
47.0 |
101.5 |
14.3 |
37.6 |
81.2 |
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1. The Brockham field lies in Licence PL235. Angus Energy working interest in Licence PL235 is 80% 2. The 1P case has been truncated to the anticipated Licence expiry as published by DECC of 27/10/2017. |
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QUALIFICATIONS
RPS is an independent consultancy specialising in petroleum reservoir evaluation and economic analysis. The provision of professional services has been solely on a fee basis. Mr Gordon Taylor, Director, Geoscience for RPS Energy, has supervised the evaluation. Mr Taylor is a Chartered Geologist and Chartered Engineer with over 30 years experience in upstream oil and gas.
Other RPS employees involved in this work hold at least a Masters degree in geology, geophysics, petroleum engineering or a related subject or have at least five years of relevant experience in the practice of geology, geophysics or petroleum engineering.
BASIS OF OPINION
The results presented herein reflects our informed judgement based on accepted standards of professional investigation, but is subject to generally recognised uncertainties associated with the interpretation of geological, geophysical and engineering data. The Services have been conducted within our understanding of petroleum legislation, taxation and other regulations that currently apply to these interests. However, RPS is not in a position to attest to the property title, financial interest relationships or encumbrances related to the properties.
Our estimates of resources and value are based on the data set available to, and provided by Angus. We have accepted, without independent verification, the accuracy and completeness of these data.
The report represents RPS' best professional judgement and should not be considered a guarantee or prediction of results. It should be understood that any evaluation, particularly one involving exploration and future petroleum developments, may be subject to significant variations over short periods of time as new information becomes available. As stated in the Agreement, RPS cannot and does not guarantee the accuracy or correctness of any interpretation made by it of any of the data, documentation and information provided by the Company or others in accordance with the Agreement. The Consultant does not warrant or guarantee, through the Services, this report or otherwise, any geological or commercial outcome.
This report relates specifically and solely to the subject assets and is conditional upon various assumptions that are described herein. The report, of which this letter forms part, must therefore be read in its entirety. Except with permission from RPS, this report may only be used in accordance with the Agreement. It must not be reproduced or redistributed, in whole or in part, to any other person than the addressees or published, in whole or in part, for any purpose without the express written consent of RPS. "
A glossary of technical terms used by RPS in their CPRs is set out below:
Glossary
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MMstb Mstb |
million stock tank barrels of oil thousand stock tank barrels of oil |
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oil-in-place |
the volume of oil estimated to have been initially in place |
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P90 |
There is estimated to be at least a 90% probability (P90) that the quantities in place equal or exceed this low estimate |
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P50 |
There is estimated to be at least a 50% probability (P50) that the quantities in place equal or exceed this best estimate |
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P10
|
There is estimated to be at least a 10% probability (P10) that the quantities in place equal or exceed this high estimate |
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1C |
The low estimate of Contingent Resources. There is estimated to be a 90% probability that the quantities actually recovered could equal or exceed this estimate |
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2C |
The best estimate of Contingent Resources. There is estimated to be a 50% probability that the quantities actually recovered could equal or exceed this estimate |
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3C |
The high estimate of Contingent Resources. There is estimated to be a 10% probability that the quantities actually recovered could equal or exceed this estimate |
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1P |
The low estimate of Reserves (proved). There is estimated to be a 90% probability that the quantities remaining to be recovered will equal or exceed this estimate |
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2P |
The best estimate of Reserves (proved + probable). There is estimated to be a 50% probability that the quantities remaining to be recovered will equal or exceed this estimate |
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3P |
The high estimate of Reserves (proved + probable + possible). There is estimated to be a 10% probability that the quantities remaining to be recovered will equal or exceed this estimate |
-ENDs-