UK Oil & Gas acquires new assets in UK

UK Oil & Gas has provided an update on its newly acquired UK oil assets.

The company has received US$ 50,651 for the month of October from IGas Energy Plc (IGas) for UKOG's share of oil production from the Horndean and Avington oil fields, which formed part of the recently acquired Northern Petroleum Plc's (NOP) UK production and exploration oil and gas licence interests. The effective date of the NOP transaction was 23 July 2014.

Comments

David Lenigas, UKOG Chairman, commented: "Our recently completed review of the NOP interests has highlighted the long-life revenue potential of the newly acquired Horndean and Avington oil fields and also the significant exploration and development potential that exists in the Company's expanded UK acreage."

Asset summary

Horndean oil field, PL 211

• Located in Hampshire, close to the Singleton and Storrington oil fields
• Discovered in 1983, commenced production in 1987
• Seven wells drilled to date into the Jurassic, Great Oolite reservoir
• Produced oil is 39°API, transported by truck to the nearby Holybourne Oil Terminal
• Gross production peaked at 670 barrels per day (bpd) in 1993
• IGas' 2014/15 forecast for production, from four wells, is approximately 150 bpd (gross)
• Gross cumulative production totals 2.39 million barrels, at 23 July 2014
• Production is expected to continue for a further 33 years

Avington oil field, PEDL 070

• Located in Hampshire, close to the Stockbridge oil field
• Discovered in 1987, commenced production in 2007
• Five wells and side-tracks drilled to date into the Jurassic, Great Oolite reservoir
• Produced oil is 38°API, transported by truck to the Stockbridge oil field
• Gross production peaked at over 600 bpd in 2007
• IGas' 2014/15 forecast for production, from two wells, is approximately 60-70 bpd (gross)
• Gross cumulative production totals 221,000 barrels, at 23 July 2014
• Production is expected to continue for a further 7 years

Offshore Isle of Wight, PEDL 233

• Located offshore, SW of Isle of Wight
• The licence was awarded to a bidding group led by NOP in July 2012
• In order to extend the licence into a second term, a well has to be drilled by February 2016
• If no drilling takes place, the licence will be relinquished
• UKOG has applied (with Angus Energy Limited and Solo Oil plc) for the adjacent onshore acreage in the UK 14th Landward Licencing Round.

Baxters Copse oil discovery

• Located in Hampshire, adjacent to the Singleton Oil Field
• Baxters Copse was discovered in 1983, with oil in the Jurassic, Great Oolite reservoir
• The licence also contains the Burton Down and Selhurst Park prospects
• The operator plans to drill a Baxters Copse appraisal well in 2015.
• Baxters Copse is an undeveloped discovery

Markwells Wood, PEDL 126

• Located in Hampshire, immediately east of the Horndean Oil Field
• Markwells Wood was discovered in 2011, with oil in the Jurassic, Great Oolite reservoir, with a 6-month extended well test carried out by NOP
• 3931 barrels was produced during the extended well test, with a peak flowrate of 53 bpd
• The discovery is believed to be an eastern extension of the Horndean oil field
• UKOG will evaluate this discovery, including giving consideration to drilling a side-track of the Markwells Wood discovery well, in order to appraise the discovery

Adapted from press release by Katie Woodward

Read the article online at: https://www.oilfieldtechnology.com/exploration/12112014/ukog-updates-on-new-uk-oil-assets-291/