UK Oil & Gas provides UK onshore operational update

UK Oil & Gas Investments PLC announces that West Sussex County Council's Planning Committee have unanimously approved a one-year extension to the existing planning permission covering its 100% owned BB-1 and 1z exploration well, located in licence PEDL234. The extension, which will expire in September 2018, enables the company to complete the full 14-week extended flow test programme as originally permitted and planned.

In addition, the Oil and Gas Authority's flow test consent has been similarly extended to December 2017. Well testing equipment is now fully assembled and testing operations are underway.

As previously stated, the 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.

About BB-1

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:
"West Sussex's unanimous approval of the extension is further recognition of the Company's operational competence, sound environmental practices and positive engagement with all stakeholders. I look forward to a successful flow test outcome."

UK OIL & GAS at a glance

UK Oil & Gas Investments plc (“UKOG”) is specifically focused on investments in the UK onshore oil and gas sector, utilising conventional extraction technologies.

UKOG are the company behind the exploration well at Broadford Bridge in West Sussex and Horse Hill, dubbed the Gatwick Gusher.

The company are listed and trade on London’s Alternative Investment Market (AIM) and NEX Exchange (formerly the ISDX Growth Market) and have a portfolio of direct and indirect investments in 10 UK onshore exploration, appraisal, development and production assets.

These assets cover 928 sq km in the Weald and Purbeck-Wight basins of Southern England. UKOG are generating investment cash from their interests in producing oil fields in the region: Horndean and Avington, as well as developing their flagship Broadford Bridge and Horse Hill projects.

UKOG is also working to advance their Markwells Wood, Baxters Copse, Holmwood and Isle of Wight licences.

By making use of the world’s latest oil and gas technologies, UKOG are endeavouring to turn their discoveries into commercially viable solutions for the benefit of the UK.

UK overview

UKOG’s assets are focussed in the Weald Basin in southern England where oil and gas drilling has been taking place for well over 100 years.

The Company is well funded and plans to grow its core UK Weald business via developing its Markwells Wood oil discovery, appraising the Horse Hill Portland and Baxter’s Copse oil discoveries, and importantly via new exploration and acquisitions in the Weald and Isle of Wight.

UKOG has an indirect interest of 19.968% in two Horse Hill area licences: PEDL137 and PEDL246. The operator of the licences is Horse Hill Developments Limited (HHDL), in which UKOG has a 30% shareholding.

The Horse Hill-1 (“HH-1”) discovery well was drilled by HHDL in 2014. It discovered oil in the Portland Sandstone, as well as in deeper formations including the Kimmeridge Clay, Oxford Clay and Liassic Shale. The well is now interpreted to have penetrated a new and potentially significant hybrid tight oil play in the Kimmeridge limestone and shale section together with a potential shale oil play in the Oxford Clay and Lias shales.

Portland Discovery
The HH-1 Portland discovery lies within an approximately 100-foot gross thick conventional Jurassic Upper Portland sandstone reservoir, within a 6km by 3km Late Cimmerian age tilted fault block structure and trap, as defined by 2D seismic. The crest of the Upper Portland oil discovery lies at approximately 1760ft true vertical depth subsea and most likely extends over a mapped maximum areal closure of approximately 2000 acres. The Upper Portland reservoir is productive at the nearby Brockham field, some 9km NNW, in which UKOG has an indirect interest of 3.6%, by virtue of UKOG’s 6% shareholding in Angus Energy.

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