UK Oil & Gas Investments PLC (LON:UKOG) has told DirectorsTalk its audited results for the year ended 30 September 2016. The full results will shortly be posted to shareholders and made available on the Company’s website: www.ukogplc.com.
HIGHLIGHTS FOR THE YEAR
— The Horse Hill-1 oil discovery was the first ever to flow substantial oil from the Kimmeridge Limestones (“KL”). It achieved an aggregate stabilised natural flow rate of 1,365 barrels of oil per day (“bopd”) from two KL reservoirs (KL3 and KL4), a record rate for any UK onshore discovery well.
— Via two acquisitions, UKOG became the largest licence holder in the south-east of the UK, holding 942 gross km(2), a 113% increase from the previous reporting period.
— UKOG’s acreage interests are independently calculated to contain approximately 20% of the Kimmeridge oil in place (“OIP”) over the entire Weald Basin, with a gross P50 Kimmeridge OIP within Company licences of 17.12 billion barrels
— We acquired regulatory permissions to drill two new KL wells in 2017, Broadford Bridge-1 and Holmwood-1. Both are HH-1 geological look-alikes.
TARGETS FOR THE COMING YEAR
-- Demonstrate commercial production from one, possibly two, wells at Horse Hill by end 2018
— Demonstrate that Horse Hill results can be replicated in three other locations across the Weald Basin (two wells in 2017: Broadford Bridge-1, Holmwood-1, one further in the first half of 2018)
-- Deliver production from each well as early as permitting allows -- Further consolidate our holdings, where possible, and acquire further prospective acreage
— Planning permissions are in place for the two 2017 wells, and we expect to receive the necessary consents for the planned Horse Hill production testing and drilling activities by the end of July this year.
-- We are firmly on track to meet our end 2018 first production oil target.
