UK Oil & Gas Investments PLC (London AIM and ISDX: UKOG) announces that the Oil and Gas Authority (“OGA”) has granted final consent for the Company’s forthcoming extended flow test programme at its 100% owned Broadford Bridge-1 (“BB-1”) oil exploration well.
As previously reported, given the multiple positive indications of oil-filled fractures throughout a vertical Kimmeridge section of more than 1100 vertical ft, the planned flow test programme has now been substantially increased. The programme will now test around 900 feet of naturally-fractured Kimmeridge section over multiple zones and is designed to establish if oil can flow at commercial rates and in commercial quantities from BB-1.
A comprehensive electric logging and fracture-imaging programme is now underway, the final two logging runs of which are scheduled to be run at the weekend. The Company will provide an update on preliminary log evaluation results in due course.
Flow-testing will follow directly after the completion of electric logging and the setting of 7-inch steel casing.
BB-1, an exploration step-out, is located near 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 KL1-KL4 limestone and shale target section is supportive that a significant continuous oil deposit, with a vertical extent in excess of 1100 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 1365 barrels per day in the HH-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 confident that the logging and testing results will add further weight to the “proof of concept” that BB-1 lies within a regionally extensive continuous Kimmeridge oil deposit. The thickness and vertical extent of this deposit would be of national significance.
More importantly, perhaps, the expanded testing programme will also determine whether BB-1 itself is commercially viable and provides the basis for the Company’s first 100% owned Kimmeridge oil production site.”
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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