RNS Number : 4515G
UK Oil & Gas Investments PLC
05 August 2016
 

UK Oil & Gas Investments PLC

("UKOG" or the "Company")

Pre-completion of acquisition of 100% interest in 300 sq km License in the Weald Kimmeridge Limestone Oil Province (PEDL234) and a 22.5% interest in the Isle of Wight licence P1916 (taking UKOG's interest to 100%)

As announced on 13 June 2016 UK Oil & Gas Investments PLC (London AIM and ISDX: UKOG) entered into agreements with Celtique Energie Petroleum Limited and Magellan Petroleum (UK) Limited respectively to acquire 100% ownership of PEDL234, the 300 sq km (116 sq miles) licence in the Weald Basin, and a 22.5% interest in the Isle of Wight licence P1916 (the "Licences"). The announcement can be found at http://irpages2.equitystory.com/websites/rns_news/English/1100/news-tool---rns---eqs-group.html?article=24532272&company=ukog

UKOG is pleased to report that the two-year extension of PEDL234 and the normal regulatory approvals for the Licences have been granted by the Oil and Gas Authority and, as such, the pre-conditions to the agreements have been met.

As part of the consideration payable under the PEDL234 agreements, UKOG has applied for the admission to trading on AIM and the ISDX Growth Market of 142,648, 831 new ordinary shares ("New Shares") in the Company. Trading of the New Shares is expected to commence on or around 11 August 2016 ("Admission"). Following Admission, the Company's issued share capital will consist of 2,496,652,300 ordinary shares ("Ordinary Shares"), with no Ordinary Shares held in treasury. Therefore, shareholders may use the above figure of 2,496,652,300 Ordinary Shares as the denominator for the calculations by which they will determine if they are required to notify their interest, or a change to their interest, in UKOG under the FCA's Disclosure and Transparency Rules.

The Company will confirm once these New Shares have been admitted, which will complete the transaction.

About the Licence

The acquisition of PEDL234 more than doubles the Company's net acreage holdings in the prime Kimmeridge Limestone Oil province, as proven by the Horse Hill-1 ("HH-1") oil discovery which, as reported on 21 March 2016, tested at a commercial aggregate stable dry oil flow rate of 1,688 barrels of oil per day from the Kimmeridge Limestones and Portland section. Importantly, the PEDL234 licence includes regulatory permission to drill the Kimmeridge at the Broadford Bridge-1 site. Furthermore, PEDL234 contains a further mapped gas appraisal opportunity, in the eastern extension of the Godley Bridge Portland gas discovery.

Stephen Sanderson, UKOG's Executive Chairman, commented:

"This is an important step for the Company, making UKOG the leading player and acreage holder in Kimmeridge oil and a significant player in the UK onshore oil industry. It fits perfectly into our overall 2-year strategy to de-risk and push the Kimmeridge play to the point of commercial development. We are on a very exciting journey."

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 / James Bavister                                                                                     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 the 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

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.

 

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.

 

Broadford Bridge

PEDL234

100%7

Kimmeridge Oil & Gas Limited

Kimmeridge Oil & Gas Limited

300.0

BB-1 well permitted; expected 2017 spud date.

 

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

31.2%

Horse Hill Developments Ltd 6

Horse Hill Developments Ltd 6

99.3

Extended flow testing of HH-1.

 

Horse Hill 4

PEDL246

31.2%

Horse Hill Developments Ltd 6

Horse Hill Developments Ltd 6

43.6

Extended flow testing of HH-1.

 

Isle of Wight (Offshore) 3

P1916

100%7

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 48% interest in HHDL; HHDL has a 65% interest in PEDL137 and PEDL246.

7. On completion of the acquisitions mentioned above in respect of PEDL234 and P1916.

 

 


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