Reach

UK Oil & Gas PLC

("UKOG" or the "Company")

PEDL234 Loxley gas discovery update

UK Oil & Gas PLC (London AIM: UKOG) is delighted to announce that SGN (southern England's gas distribution pipeline network operator) has confirmed that their Local Transmission System ("LTS") can accept all the potential future gas production from UKOG's 100%-owned Loxley gas discovery. SGN's capacity thus provides a clear route to the wider gas market and the monetisation of Loxley's gas.

SGN's network analysis demonstrates that the LTS can readily accept 34,500 cubic metres per hour (equivalent to 30 million cubic feet of gas per day), corresponding to Loxley's high-side forecast field production rate. A pipeline routeing study to the identified grid entry point can now commence.

For further information, please contact:

UK Oil & Gas PLC
Stephen Sanderson / Allen D Howard		Tel: 01483 941493
WH Ireland Ltd (Nominated Adviser and Broker)
James Joyce / Andrew de Andrade		Tel: 020 7220 1666
Communications
Brian Alexander		Tel: 01483 941493

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