UK Oil & Gas Inv PLC (AIM:ISDX:UKOG) Further Kimmeridge Oil Reservoir Zone Identified

 

Further Kimmeridge Oil Reservoir Zone Identified,

Broadford Bridge-1 Exploration Well, Weald Basin, UK

UK Oil & Gas Investments PLC (London AIM and ISDX: UKOG) announces that third party specialists at P-Ten (UK), and Premier Oilfield Laboratories (“POL”), USA, have examined image logs and 13 cores from its 100% owned Broadford Bridge-1 (“BB-1”) exploration well located in licence PEDL234.

They report extensive natural fracturing throughout the entire Kimmeridge section, including a previously unidentified potential oil bearing fracture-zone below the lowest Kimmeridge Limestone, KL1.  This new reservoir zone, designated as KL0, is intensely fractured and spans the interval 5,508-5,640 ft MD.  These results accord with drilling data, observed oil and wet gas shows and extend the gross possible vertical thickness of the Kimmeridge Continuous Oil Deposit to around 1,200 ft. Further fractured zones were recorded on image logs above KL4 between 3,800-4,018 ft MD.

Significant oil seeps from early core samples: oil saturated Kimmeridge Limestones

The Company is currently mobilising equipment to perforate and flow test a total combined 900 ft of the Kimmeridge section, beginning with the deepest reservoir zones. Permissions from the Oil and Gas Authority, Environmental Authority and West Sussex County Council are in place, final consent from the Health and Safety Executive is expected in due course.

 

 

The flow test programme is specifically designed to gather further supportive evidence that the Kimmeridge contains a Continuous Oil Deposit containing mobile light oil and which can flow to surface at commercial rates and in commercial volumes. Further updates on flow testing, set to commence following completion of 7-inch casing and well completion, will be provided in due course.  

Schlumberger’s comprehensive electric logging and fracture-imaging programme has now been successfully executed. This includes the first use in the Weald and Kimmeridge section of Schlumberger’s Lithoscanner tool, used for elemental and total organic carbon analysis in shales and limestones.

Detailed log interpretations, calibrated to the 554 ft of BB-1 core data, are ongoing at COREX in Aberdeen, and at POL and Nutech in Houston, Texas. Further log interpretation updates and results will be announced in due course.

 

Highlights

·      Preliminary image log interpretations reveal a further, highly naturally-fractured Kimmeridge shale and limestone reservoir zone, designated “KL0”, from 5,508-5,640 ft measured depth (“MD”). Fractures on image logs coincide with lost circulation zones, oil in mud and wet gas shows.

·      Gross possible Kimmeridge fractured oil-bearing zone increased by 132 ft to 1,622 ft MD, a true vertical section of around 1,200 ft; spans five entire naturally fractured Kimmeridge Limestone and shale zones (KL0-KL4) from 4,018-5,640 ft MD. Zone may extend further upwards into fractured zones above 3,800 ft MD.

·      Schlumberger electric logging and fracture imaging completed, cement plug in deeper Corallian sandstone set and 7-inch steel casing currently being run in the hole. Flow testing of multiple zones over an aggregate 900 ft total perforated section to commence following setting of remaining 7-inch steel casing to TD and well completion.

About BB-1

BB-1, 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 Kimmeridge KL0-KL4 limestone and shale target section is supportive that a significant Continuous Oil Deposit, with a vertical extent of around 1,200 feet has been demonstrated at BB-1. The uppermost two units of this zone, KL4 and KL3, flowed oil at a stable aggregate rate of 1,365 barrels per day in the HH-1 discovery near Gatwick Airport in 2016.

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:

“BB-1, UKOG’s new flagship asset, continues to provide a stream of data and ground-breaking technical insights into what we believe is a new and potentially highly significant oil resource. This comprehensive and extensive data set is a sound investment into the future of BB-1 and our corporate goal to establish first Kimmeridge production by the end of 2018/early 2019.

With the technical data from drilling, core and logs continuing to provide mutually supportive evidence of “proof of geological concept”, we will now move on very shortly, via a comprehensive extended flow testing programme, to test the concept that oil can flow to surface from the KL0-KL4 at commercial rates and volumes, the litmus test for any oil company.

Whilst there is always uncertainty in any new well and testing outcome, the technical results from BB-1 to date continue to remain both positive and most encouraging.”

[idz_button color=”default” size=”large” label=”UKOG Investor Presentation” icon=”” link=”/oilandgas/ukog/3/” target=”_blank” type=”square_shape” class=””]

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 

 

Linking Shareholders and Executives :Share Talk

If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates.

Terms of Website Use

All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned