UK Oil & Gas Investments PLC (London AIM and ISDX: UKOG) is pleased to announce that, following today’s departure of the drilling rig, it has now commenced the flow testing phase at its 100% owned BB-1 and 1z exploration well, located in licence PEDL234.
· Broadford Bridge-1z (“BB-1z”) sidetrack completed as a potential oil producer with an aggregate total of 1,064 ft of perforations over eight naturally fractured Kimmeridge zones, including a new uppermost reservoir zone, Kimmeridge Limestone 5 (“KL5”), where mobile light oil was recovered to surface in BB-1 cores.
· Following each of four extensive perforation runs, a pressure increase was observed in the well annulus together with live, mobile oil shows at surface.
· Drilling and completion phases now successfully completed. Drilling rig departed safely from the well site without incident.
· Rig-less extended flow testing phase now underway. Flow testing over multiple Kimmeridge reservoir zones to commence following rig-up of well test equipment. All necessary regulatory permissions for flow testing in place.
All necessary permissions are in place to commence flow testing of multiple Kimmeridge Limestone reservoir zones following the rig-up of well test equipment.
Prior to rig departure, the well was successfully perforated and completed as a potential oil producer over a gross Kimmeridge reservoir interval spanning 3,920-5,657 ft MD. The perforated section spans eight naturally fractured Kimmeridge Limestone and interbedded shale reservoir units, with a total aggregate perforated section of 1,064 ft. Further to previous announcements, the perforated section was increased to include a further naturally fractured reservoir zone, designated KL5, where mobile, light oil was recovered to surface from core.
Following each of four tubing conveyed perforating (TCP) runs, a pressure increase was observed in the well’s annulus, indicating likely flow of reservoir fluids into the wellbore. Additionally, reverse circulation, immediately following perforating, saw significant mobile, light oil shows returned to surface, further confirming the presence of light oil within the full completed Kimmeridge section.
In order to minimise HGV impact during peak traffic time and to ensure a safe exit operation, it was agreed with both West Sussex County Council and Sussex Police to move the rig from the site as early today as possible. The rig move was accomplished without incident followed by the delivery of flow testing equipment to the site.
The comprehensive extended flow test programme is specifically designed to gather further supportive evidence that the Kimmeridge contains mobile light oil within an extensive continuous oil deposit, which can flow to surface at commercial rates and in commercial volumes. Flow test results will be reported in due course.
BB-1 and BB-1z, an exploration step-out, is located south of Billingshurst, West Sussex, within the 300 km² PEDL234 licence, in which the Company has a 100% interest via its ownership of the licence’s operator, Kimmeridge Oil & Gas Limited (“KOGL”).
As previously reported, in the Company’s opinion, the multiple positive indications of mobile light oil observed throughout the entire naturally fractured KL0 to KL5 target reservoir sections are supportive that a significant continuous oil deposit, with a vertical extent of around 1,400 ft has been demonstrated by BB-1 and 1z. In 2016, two units of this zone, KL4 and KL3, flowed oil at a stable aggregate rate of 1,365 barrels per day in 2016 in the Horse Hill-1 discovery near Gatwick Airport.
This continuous oil deposit therefore likely underlies the entire PEDL234 licence and a significant area of the wider Weald Basin, including the Horse Hill-1 Kimmeridge oil discovery some 27 km to the north east. The Company has the largest licence holding in the Weald Basin and within the prospective area of the Kimmeridge play.
Stephen Sanderson, UKOG’s Executive Chairman, commented:
“I am delighted to report the safe and successful completion of the drilling and completion phase of the well at our flagship Broadford Bridge oil discovery.
The well continues to deliver significant technical insights, this time via the extensive perforation programme, the results of which provides further encouraging confirmation of mobile, light oil within the target Kimmeridge reservoir zones.
I thank all the many staff and contractors involved for their professionalism and dedication in delivering the well in optimal condition for the extensive flow testing programme, which is now underway.”
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.
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