UK Oil & Gas Investments PLC

("UKOG" or the "Company")

Amended - Operational and Technical Update

Broadford Bridge-1 & 1z Oil Discovery, Weald Basin, UK

The following amendment has been made to the 'Operational, Technical and Corporate Update' announcement released on 27/12/2017 at 07:00 under RNS No 2771A.

The paragraph, "Operational update", second sentence should have referred to test 4, not KL4 and this amended paragraph is written below:

Test 4, over the basal 50 ft section of KL3, was successfully completed following several mechanical and test completion problems. Following nitrogen lifting, the well flowed naturally at an instantaneous rate of approximately 300 bfpd declining to a steady inflow of between 30-50 bfpd over several days. Fluids returned over the duration of test 4 consisted primarily of completion fluids together with traces of live oil, accompanied by a gas blow during pressure build up periods. In the Company's view, this horizon, whilst containing moveable hydrocarbons, appears to be unproductive due to low reservoir permeability.

All other details remain unchanged.

The full amended text is shown below.

Amended - Operational and Technical Update

Broadford Bridge-1 & 1z Oil Discovery, Weald Basin, UK

Highlights

· Testing of upper Kimmeridge Limestone 3 ("KL3"), KL4 and KL5 primary targets to recommence after scheduled Christmas/New Year shutdown.

· Basal KL3 test successfully re-run following mechanical problems. Initial natural flow of approximately 300 barrels of returned completion fluids per day ("bfpd") decreasing to a continuous rate of 30-50 bfpd during well clean-up. Gas blow and live oil traces recovered to surface. Low reservoir productivity indicates zone likely not economically viable.

· Further KL4 and KL5 naturally fractured reservoir and potential oil pay identified from electric logs and core. Additional 80 ft of perforations in KL4 and KL5 to be shot prior to January testing resumption.

· 38.5° API gravity oil extracted from KL5 core demonstrates that oil occupies around 6% of the total KL5 rock volume. Oil recovered to surface typed to same Upper Jurassic oil family as produced at Horse Hill

· Core analyses demonstrate mid to basal Kimmeridge lies within early oil generative window, confirms BB-1 lies within the Kimmeridge continuous oil play. Prime Kimmeridge "sweet spot" likely covers most of PEDL234 north of BB-1

· BB-1 core demonstrates world class oil-source potential, several Kimmeridge zones exceed 30% Total Organic Carbon ("TOC") by weight, three times higher than equivalent section seen in Horse Hill

· Acquisition of two further drilling sites under negotiation within PEDL234 Kimmeridge "sweet spot", first new planning application in progress, expected submission in mid-spring 2018

UK Oil & Gas Investments PLC (London AIM: UKOG) announces that following the completion of test number 4 within the basal section of KL3, operations will now shutdown over the Christmas and New Year period at its 100% owned Broadford Bridge-1z ("BB-1z") exploration discovery, located in licence PEDL234. Testing of the remaining primary uppermost KL3, the KL4 and KL5 will recommence early in the New Year. The site will remain manned and secure over the shutdown period.

Operational Update

Test 5, within the upper 100 ft of KL3, will recommence in the New Year. Nutech's electric log analyses indicate this zone contains around 54 ft of oil bearing limestone, similar in thickness to the Horse Hill oil discovery, with multiple open natural fractures seen on image logs and BB-1 core.

Dependent on remaining KL3 to KL5 results, a further naturally fractured 40 ft limestone within the deeper KL-1 may also be perforated and flow tested.

Petrophysical Analysis Update

Electric log analyses conducted to date by Premier Oilfield Laboratories and Nutech have now been integrated with available core and rock cuttings data. These data calculate a further 60 feet of naturally fractured oil-saturated limestone reservoir exist within KL4 plus an additional 20 feet in KL5. The KL5 zone corresponds to where oil was recovered to surface during BB-1 coring.

Consequently, a further 80 feet of Kimmeridge Limestone reservoir section will now be perforated prior to testing resumption.

Geochemical Analysis Update

Analyses undertaken by Geomark Research in Houston, Texas, using both oil produced during testing operations of the deeper KL0 to KL2 section and oil extracted from cores, demonstrate that the 38.5° API gravity low sulphur oil was generated from a limestone-rich Upper Jurassic shale source-rock, probably the Kimmeridge Clay Formation.

Flowing oil samples and oil extracted from BB-1 core also demonstrate near identical geochemical properties to the Kimmeridge and Portland oil produced at Horse Hill-1 ("HH-1"). It is therefore interpreted that the BB-1 and HH-1 oils are from the same family of oils representing a common Upper Jurassic stratigraphic origin.

The quantity of live oil extracted from the KL5 core indicates that oil within the KL5 limestone matrix occupies over 6% of the total KL5 rock volume. Calculated oil saturations from electric logs within this zone exceed 50%. The equivalent KL5 reservoir zone in BB-1z will form the basis of the forthcoming KL5 flow test.

Thermal maturity analysis of extracted organic material from the BB-1 core demonstrates that the mid Kimmeridge section of the well lies at or within the early oil generative window (i.e. at or around a vitrinite reflectance equivalent, or Ro, of around 0.6). This finding confirms that Broadford Bridge lies within the Kimmeridge continuous oil play.

More significantly, the thermal maturity findings, representing how far within the oil generative window BB-1 Kimmeridge sediments have been buried, demonstrate that most of the 300 km² PEDL234 licence to the north of BB-1, where the Kimmeridge has been more deeply buried, falls within the prime Kimmeridge exploration "sweet spot" where significant volumes of hydrocarbons have likely been generated and retained within the Kimmeridge.

Core analysis also further confirms that the Kimmeridge shales in BB-1 contains world class oil-source potential, as several Kimmeridge zones exceed 30% Total Organic Carbon ("TOCs") by weight, three times higher than the equivalent section seen in Horse Hill. The richest source potential lies within shales between KL3 and KL4, as is the case at Horse Hill.

Future Drilling Plans

Given the significant insights gained from BB-1 into the thermal maturity of the Kimmeridge source rocks, the Company has accelerated its plans for further drilling in the central and northern prime sector of PEDL234.

Planning Consultants have been engaged and are actively pursuing the acquisition of two further drilling sites in the central sector of the licence. An application for planning consent on the first of these planned locations has commenced and is expected to be submitted to the local council in mid-spring 2018, with drilling planned for spring 2019.

Further work at the BB-1 site is under consideration to target known intensely naturally fractured oil-bearing Kimmeridge limestone zones. A final decision awaits results and analysis of the remaining KL3, KL4 and KL5 tests.

Regulatory Update

While current plans envisage testing to be completed by the end of January 2018, the Oil and Gas Authority have granted their regulatory consent for BB-1z flow testing to extend until the end of February 2018.

About BB-1:

As previously reported, BB-1 was purposely drilled in a location where no conventional hydrocarbon trapping mechanism within the Kimmeridge reservoir section is evident. Therefore, in the Company's opinion, the presence of moveable, light Kimmeridge oil and associated solution gas at BB-1z provides proof that the Kimmeridge at Broadford Bridge contains a significant continuous oil deposit of up to 1400 ft gross vertical thickness.

The near identical Kimmeridge reservoir parameters and geology seen at BB-1 and 1z and the Horse Hill-1 Kimmeridge oil discovery, in which the Company holds a 32.435% interest, some 27 km to the northeast, demonstrates that the Kimmeridge oil accumulation is also laterally extensive across the Central Weald Basin and, consequently, a potentially significant national oil resource.

UKOG, as the largest licence holder in the Kimmeridge oil accumulation's "sweet-spot" is well positioned to exploit this extensive oil resource.

Corporate Update

The Company would like to update the market as to its announcement made on 24^th November 2017 'Loan Conversion'. This announcement stated an incorrect number of shares issued as 13,398,137. The correct number of shares issued was 13,308,137 and these have been allotted and admitted to trading. The Company also advises that, further to the announcement of 18th December 2017, 16,753,225 ordinary shares were allotted at Companies House on 13th December 2017 and as previously notified were issued on 18th November 2017. These updates do not alter the total number of ordinary shares in issue which is correct as per the latest announcement of 3,630,706,545 shares.

Stephen Sanderson, UKOG's Executive Chairman, commented:

"Whilst we await further test results of key importance to the commercial success of this single well, we ought, perhaps, to take the opportunity to reflect upon the wider Kimmeridge exploration picture and the positive implications of BB-1 results to date.

The Kimmeridge play is still in its infancy, BB-1 being one of only three wells targeted at the Kimmeridge in the history of the Weald Basin. BB-1 is therefore of paramount importance to help better understand the Weald-wide Kimmeridge play, in which the Company holds the leading acreage position.

Although we still have many more questions than answers, the incoming stream of new analyses from our significant investment in BB-1 data acquisition has moved the Company's understanding of the play to new levels. Armed with this new-found knowledge, we have committed significant funds towards accelerating acquisition of two further drilling sites, located in what we now understand to be the prime "sweet spot" of the Kimmeridge oil deposit within PEDL234. These data have also opened our eyes to the possible additional ways to extract oil at commercial rates from BB-1 and future wells elsewhere in the play.

We therefore look forward to the resumption of BB-1z operations, the testing of those Kimmeridge reservoirs proven productive at Horse Hill, and the first ever test of the KL5, already proven to contain oil by BB-1 core. "

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 / Kiran Morzaria Tel: 01483 243450

WH Ireland (Nominated Adviser and Broker)

James Joyce / James Sinclair-Ford Tel: 020 7220 1666

Cenkos Securities PLC (Joint Broker)

Joe Nally / Leif Powis Tel: 0207 397 8919

Public Relations

Brian Alexander / David Bick Tel: 01483 900583/ 01483 243450

Glossary

casing	heavy-gauge steel pipe that is lowered into position in the open hole of a well and cemented into place. Casing is run to isolate rock formations with different pressure gradients from the well bore and to ensure that any fluids within the well are isolated from the surrounding rock and surface groundwater zone
Completion, well completion, or test completion	the process of making a well ready for production. This principally involves preparing the bottom of the hole to the required specifications, running in the production tubing and its associated downhole tools as well as perforating as required, together with the appropriate completion fluid contained in the well. The process of running in and cementing the casing can also be included in this category
continuous oil deposit or resource deposit	a petroleum accumulation that is pervasive throughout a large area, which is not significantly affected by hydrodynamic influences (i.e. the buoyancy of oil in water) and is not trapped by structural or stratigraphic geological conditions. The deposit, in contrast to conventional accumulations, has therefore not accumulated by the migration of petroleum over medium to long distances. The petroleum in such deposits is found within, or immediately adjacent or close to, the pore spaces where the petroleum is generated, i.e. those pore spaces lying within petroleum source rocks containing organic rich compounds (kerogen) that, when heated over geological time, transform into petroleum. These accumulations are generally associated with organic-rich shales such as the Kimmeridge Clay Formation. Such accumulations do not generally contain significant volumes of free, mobile formation water and therefore have no observable hydrocarbon-water contacts. The extent of the accumulation is generally defined by the limit of where burial depths have been sufficient to transform organic matter within the petroleum source rock unit into petroleum
core or coring	a drilling technique that involves using a doughnut-shaped drilling bit to capture or "cut" a continuous cylinder-shaped core of undamaged in-situ rock. The core is captured in a steel pipe or "core barrel" above the bit. Core is normally cut in 30 feet lengths, or multiples of 30 feet, and normally with a diameter of 3.5 or 4 inches. Core is taken in petroleum reservoir rocks for detailed laboratory analyses of petrophysical and geomechanical parameters
degree API	a measure of the density of crude oil, as defined by the American Petroleum Institute
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
electric logs	measurements of the electrical properties of the rock and fluids in and surrounding the wellbore to determine the petrophysical and geological properties of the rock in its in-situ state. The electric logs in BB-1z include 3-dimensional images of the electrical resistivity of the rock which when processed are designed to map and characterise natural fractures, these are known as " image logs"
extended flow test or production test	a flow test, or extended well test, designed to test the longer term production performance of a discovery with a view to declaring commercial viability and the establishment of permanent production.
flow test	a test period where hydrocarbons are flowed to surface 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 oil at a commercial flow rate and to recover oil in commercial quantities or volumes
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, being made of the remains of calcareous planktonic algae called coccoliths. The Kimmeridge Limestones are comprised of fine grained coccoliths, fine grained calcium carbonate mud, clay minerals, together with dark grey organic matter
naturally fractured reservoir	a fractured reservoir contains open and usually connected cracks or fissures within the rock matrix; fractures can enhance permeability of rocks greatly by connecting pore-spaces together; naturally fractured reservoirs have been created over geological time by nature, not man-made via hydraulic fracturing
nitrogen lifting	the injection of nitrogen into the fluid column in an oil or gas well to initiate fluid flow and production from the reservoir. Due to the low density of nitrogen, this process reduces the back pressure (known as "drawdown") on the reservoir
oil in place (OIP)	the quantity of oil or petroleum that is estimated to exist originally in naturally occurring accumulations before any extraction or production
perforating, perforation	the use of tubing (typically) to convey perforating "guns" to the required well depth. Perforating guns are devices used to prepare wells for production, containing shaped explosive charges in a range of sizes and configurations to optimise the depth of penetration through the steel well casing and surrounding cement and into the adjacent reservoir rock
play	a set of known or postulated oil and or gas accumulations sharing similar geologic, geographic, and temporal properties, such as source rock, migration pathways, timing, trapping mechanism, and hydrocarbon type
sandstone	a clastic sedimentary rock whose grains are predominantly sand-sized. The term is commonly used to describe a consolidated and cemented rock made predominantly of quartz grains
shale	a fissile rock that is formed by the consolidation of clay, mud, or silt particles, and that has a finely stratified or laminated structure. Certain shales, such as those of the Kimmeridge Clay, often contain a significant proportion of organic material, which when subject to increasing temperature and pressure over geological time transform into petroleum (known as petroleum "source rocks")
sidetrack	re-entry of a well from the well's surface location with drilling equipment for deviating from the existing well bore to achieve production or well data from an alternative zone or bottom hole location
thermal maturity	a term applied to source rocks which have received sufficient temperature and pressure over geological time to generate hydrocarbons
total organic carbon or TOC	the weight percentage of organic carbon within the rock which is a commonly used measure of hydrocarbon source rock richness
vitrinite reflectance (R_o)	a measure of the percentage of incident light reflected from the surface of vitrinite particles in a sedimentary rock. It is referred to as % R_o and is a measure of the thermal maturity of a rock. Top of the oil window is dependent on source rock type, but is widely recognised to be at a R_o equivalent of between 0.5-0.7%.

UKOG Licence Interests

The Company has interests in the following ten 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	Appraisal/development well planned; licence extended to 2018
Broadford Bridge ³	PEDL234	100%	Kimmeridge Oil & Gas Limited ⁴	Kimmeridge Oil & Gas Limited ⁴	300.0	BB-1 & 1z drilling completed, testing of multiple zones underway
Holmwood ³	PEDL143	40%	UKOG	Europa Oil & Gas (Holdings) plc	91.8	Holmwood-1 exploration well planned in 2018
Horndean ¹	PL211	10%	UKOG (GB) Limited	IGas Energy Plc	27.3	Field in stable production
Horse Hill ⁵	PEDL137	32.435%	Horse Hill Developments Ltd ^⁶	Horse Hill Developments Ltd ^⁶	99.3	Planning Permission & EA permit granted for production tests and two wells
Horse Hill ⁵	PEDL246	32.435%	Horse Hill Developments Ltd^⁶	Horse Hill Developments Ltd ^⁶	43.6	As above
Isle of Wight (Offshore) ³	P1916	100%	UKOG Solent Limited	UKOG Solent Limited	46.7	Reviewing M prospect viability and well plan
Isle of Wight (Onshore) ^{2, 3}	PEDL331	65%	UKOG	UKOG	200.0	Preparing Arreton-3 planning submission
Markwells Wood ²	PEDL126	100%	UKOG (GB) Limited	UKOG (GB) Limited	11.2	Submitted planning application for appraisal and field development

Notes:

1. Oil field currently in production.

2. Oil discovery pending development and/or appraisal drilling.

3. Exploration asset with drillable prospects and leads. Contains the Broadford Bridge-1 and 1z discovery well and the extension of the Godley Bridge Portland gas discovery.

4. UKOG has a 100% interest in Kimmeridge Oil & Gas Limited, which has a 100% interest in PEDL234.

5. Oil discovery with recently completed flow testing.

6. UKOG has a direct 49.9% interest in HHDL, which has a 65% interest in PEDL137 and PEDL246.

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.