For Immediate Release

2 July 2014

UK Oil & Gas Investments PLC

("UKOG" or the "Company")

Lidsey Oil Field Update

UK Oil & Gas Investments PLC (AIM: UKOG) announces a 230% increase in oil production from the conventional Lidsey Oil Field ("Lidsey"), near Bognor Regis south of London, from 34 barrels of oil per day ("bopd") in May 2014 to a current rate of 113 bopd of 34 API oil after a successful recompletion programme on the Lidsey-1 well.

The operators of Lidsey, Angus Energy Limited ("Angus Energy") have advised that an 80-foot section of the Greater Oolite reservoir was perforated using tubing conveyed (TCP) guns, at 4 perforations per foot, using Paradigm Connect charges between 3,271 feet and 3,351 feet at 16:00 hours on Sunday,  22 June 2014.  Of the 80 feet of perforations shot, 19 feet were opening up new reservoir and 61 feet were re-perforations.

The Lidsey-1 well was put back to pump at half speed to clean-up the well at 15:30 hours on Wednesday, 25 June 2014. After an initial restricted 5 day clean-up of programme, the Lidsey-1 well produced at an average restricted rate of 47 bopd with the pump jack running at half speed. On 30 June 2014, the pump was increased to full speed resulting in a higher production rate of 113 bopd.

David Lenigas, UKOG's Chairman commented:

"This is an excellent result for Lidsey. Each phase of well workovers on the Lidsey-1 well has been successful since the workover programmes started on the field at the end of last year. UKOG looks forward to the drilling of the proposed new Lidsey-2 well later this year, which is designed to access the crest of the Greater Oolite reservoir and the majority of Lidsey's Oil in-Place."

"UKOG also looks forward to a very active programme over the coming 6 months with our partners Angus Energy here in the UK, especially with the drilling of the Horse Hill-1 well near Gatwick later this month and the drilling of the proposed Brockham side-track well in the same geographical area once final approvals have been granted."

Lidsey Oil Field (70% owned and operated by Angus Energy):

(UKOG owns 6% of Angus Energy)

The Lidsey Oil Field ("Lidsey"), is a long standing producing oil field in the Weald Basin near Bognor Regis, and is held under United Kingdom Production Licence PL 241.

Lidsey has a fully permitted and operation 2,000-barrel storage facility and its oil is regularly trucked and sold to the Perenco Oil Refinery.

On 13 March 2014, UKOG announced 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, a copy of which is available from the Company's website at www.ukogplc.com

Glossary:

-ENDS-

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