UK Oil & Gas Investments PLC

("UKOG" or the "Company")

Further Update on Horse Hill-1 Flow Test

Portland Zone Flows Oil at a Sustained Rate of 168 Barrels Per Day

UK Oil & Gas Investments PLC (London AIM and ISDX: UKOG) announces that Horse Hill Developments Limited ("HHDL") has informed the Company that 37-degree API, light, sweet, dry (99-100% oil) crude has flowed to surface, via rod pumping, at an average stabilised rate of 168 barrels per day over a continuous 9-hour period. The flow is from an 103-ft aggregate perforated zone within the Upper Portland sandstone interval at a depth of approximately 615 metres below ground level. Maximum flow during this test period was restricted by the initial rod pump configuration. The flow test will now continue with a pump configuration designed to permit optimal flow over a longer flow period.

The Horse Hill-1 ("HH-1") well has now produced at a combined average stable rate of over 1,528 bopd from the two Kimmeridge and Upper Portland zones.

It should be noted that the only commercial Upper Portland oil production in the Weald Basin is from the nearby Brockham field, 8 km to the northwest of HH-1, in which the Company has an indirect 3.6% interest. The Brockham field was discovered by BP in 1987 and flowed 28-degree API oil on an extended well test in 1988, at a maximum stabilised rate on pump of 117 bopd. A subsequent extended well test in 2001, prior to commercial production, produced oil at an average pumped rate of approximately 140 bopd.

Horse Hill-1 Discovery Well and Licence

The exploration drilling phase of the HH-1 discovery well was originally completed at the end of 2014. The well is located within onshore exploration Licence PEDL137, on the northern side of the Weald Basin near Gatwick Airport. UKOG owns a 19.968% interest in PEDL137.

Stephen Sanderson, UKOG's Executive Chairman commented:

"The Horse Hill well still continues to flow and perform above management's expectations. Higher flow rates and markedly better crude quality than the Upper Portland oil from the nearby Brockham field make the HH-1's commercial prospects very real. We look forward to the results from the optimised pumping programme."

UKOG's Interest in Horse Hill

The HH-1 well is located within onshore exploration Licence PEDL137, on the northern side of the Weald Basin near Gatwick Airport. UKOG owns a 30% direct interest in HHDL and a 0.72% interest in HHDL via its 6% interest in Angus Energy Limited. HHDL is a special purpose company that owns a 65% participating interest and operatorship of Licence PEDL137 and the adjacent Licence PEDL246 in the UK Weald Basin.

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
extended flow test	a flow test, as per the permission granted by the Oil and Gas Authority, with an aggregate flow period duration over all zones of greater than 96 hours and up to 90 days maximum
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
sandstone	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.

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

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

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

19.968%

Horse Hill Developments Ltd ⁶

99.3

Extended flow testing of HH-1.

Horse Hill ⁴

PEDL246

19.968%

Horse Hill Developments Ltd ⁶

43.6

Extended flow testing of HH-1.

Isle of Wight (Offshore) ³

P1916

77.5%

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

5.3

Drilling of infill well being considered.

Markwells Wood ²

PEDL126

100%

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 pending flow testing.

5. UKOG has a 6% interest in Angus Energy. Angus Energy 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.