UKOG’s site at Broadford Bridge. Photo: Weald Oil Watch

UK Oil and Gas Investments is looking to invest in new oil exploration and production across southern England, its half-year accounts stated today.

The company, which has interests in West Sussex and Surrey, outlined plans for seven sites. And it told investors:

“UKOG plans to continue to consolidate and expand its licence position in the UK onshore, particularly in its core Weald Basin Kimmeridge oil play, with additional exploration, development and production investments.”

Executive chairman, Stephen Sanderson, said the company was “firmly on course” to build on its oil discovery at Horse Hill site, near Gatwick Airport in Surrey. He said:

“The key first step along this journey is now underway at our Broadford Bridge drilling site”.

UKOG’s subsidiary, Kimmeridge Oil and Gas Ltd, is currently taking core samples from the Broadford Bridge well, near Billingshurst in West Sussex. The county council revealed today that the company was seeking an extension to the planning permission (DrillOrDrop report).

Mr Sanderson said the presence of mobile oil in the Kimmeridge at Broadford Bridge would “confirm beyond reasonable doubt” that the Kimmeridge Limestone reservoir targets are part of a “continuous moveable oil deposit stretching 30+km across the wider Weald Basin”.

Future plans

The unaudited accounts for the six months to 31 March 2017 included details of UKOG’s plans for the next year for the Weald basin.

Broadford Bridge, West Sussex (PEDL234)

Complete drilling, followed by electric logging, well completion and flow testing.

Godley Bridge, West Sussex (PEDL234)

Seeking to lease a site for a third appraisal well and preparing a planning application for appraisal drilling and well testing.

Markwells Wood, West Sussex (PEDL126)

Preparing to resubmit planning application for an appraisal well, extended flow testing and further production wells and will seek environmental permit from the Environment Agency.

Baxter’s Copse, West Sussex (PEDL233)

UKOG has a 50% interest. The operator, IGas, is considering drilling an appraisal well and UKOG says it “continues to review the economics” of the proposed well.

Horse Hill, Surrey (PEDL137 and 246)

Target is to put two wells into production at the end of 2018/early 2019, subject to planning permission and environmental permits.

Bury Hill Wood, also known as Holmwood and Leith Hill ,Surrey (PEDL143)

UKOG has a 30% interest, where the operator, Europa, plans to drill and test the well in the second half of 2017. UKOG says the well will target Kimmeridge limestones as well as Portland/Corallian sandstones

Arreton, Isle of Wight (PEDL331)

Seeking to lease a suitable well site to drill a third well and is preparing planning application for appraisal drilling and well testing.

Key financial figures

Figures are for the six months to 31 March 2017 and are compared to the same period in the previous year.

Revenue: £104,000 (2016: £66,000)

Cost of sales: -£167,000 (2016: -£78,000)

Operating loss: £1.069m (2016: £1.263m)

Total assets: £17.776m (2016:£17.519m)

Total liabilities: £1.196m (2016: £.950m)

Total shareholders’ equity: £16.580m (2016: £17.569m)

Net cash (outflow) from operating activities: £0.828m (2016: 1.928m)