Industry

UKOG outlines plans for seven drill sites across southern England and says it’s looking for more

Broadford Bridge 170525 Weald Oil Watch

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)

42 replies »

  1. Interesting that Arreton, Isle of Wight (PEDL331) is where the anti tracking film, The Bentley Effect and protest training was there this year?
    That raises some interesting logistics questions, not just for the frackers, but for the residents.
    I know many there personally, and they do not take invasion lightly, and have said so. I will post this blog to them.

    [Typo edited by moderator at poster’s request]

    • Crackers?? Oh dear, another Freudian slip! Could that be modified to frackers please?
      I think this mad spell checker just trotted out a new label? Not that I approve of such things of course?

      • We are winning and you are simply losing, Phil. I think that you should take a couple hours to write about it in a post that no one will read. Like most anti-fracking effluent, there is no impact. Harmless! ;o)

        • In your dreams pennywise!

          Ohhhh! i see? Did i post before you, is that what this little outburst is about?

          Someone got out the wrong side of the pad this morning? Like little school children screaming “i won! i won!” at a game when everyone knows they haven’t done any such thing, exchange looks and retire to a safer distance, how very sad.

          Winning and losing are illusions, manifested by fear, didn’t you know that?

          “Why, then, ’tis none to you, for there is nothing either good or bad, but that thinking makes it so. To me it is a prison (of the mind).” – WS -Hamlet.

          Perhaps you should look to your own posts and consider your own prison?

          Mostly harmless.

            • Such fun! Something about empty vessels making most noise there? It ain’t over ’till the frack lady swings. Its the inverse law of the pennywise grin, the bigger the painted grin, the sadder the clown.
              Endless copies of ever diminishing grins finally disappearing down their own fibonacci fractal frack.

    • As there’s already been two wells drilled at Arreton, and several others on the IoW, it seems the residents are not too worried by “invasion”.

    • the original gatwick gusher well tested at high api gravity oil, high flow rates without fracking required showing the targeted formation has natural fractures that increased permeabilty. This also shows that the if there is not a large permeability/porosity drop throughout the field that it all wells can be produced without fracking.

  2. Cushty. . Exciting times ahead for UK and Ukog. Depleting North Sea reserves. Damaged oil tankers with risk of spillages only just reported this week. Bring on the home grown oil.

      • Great but does not work at current oil price, may not work at double current oil price – inside source.

        • In the last 2 years North sea production has risen. This year they can produce for £15 a boe. That is less than half of what Centrica state is the cost for UK shale.

          http://oilandgasuk.co.uk/north-sea-industry-anticipates-2-billion-cost-improvement-by-2016/

          Oil & Gas UK says that all energy companies operating in the North Sea are expected to generate £5 billion of free cash flow in 2017 if oil prices rebounding at the same rate as current levels. Signs of good economic growth and stability.

          Norway, meanwhile, is forecasting gas output at 107.3 Bcm in 2017 while the UK has been buoyed by the startup of three new fields in 2016 — Laggan-Tormore, Alder and Cygnus.

          Industry source

          The cost of decommissioning the older parts of the North sea lies with us all. We have had over £300 billion in revenue so the costs to close old developments is a price we have to pay. Those costs are payable regardless.

          Shale cannot compete with home grown North sea. It cannot compete with Norway piped imports.

          Shale goes under a long long time before North sea. Common sense really.

          • We know North sea is much cheaper but which will develop the quickest. New North sea or onshore shale.

            North sea has 40 years experience, a fully trained workforce of 440,000, all the infrastructure and established markets.

            Onshore shale has no experience (except technical failings at Preese Hall), a handful of engineers (who created the failings at Preese Hall)
            and no infrastructure to be seen. There would be no market for expensive UK shale.

            Neck and neck?

            Giddy up snail shale

            • 440,000 minus the 120,000 who have been laid off over the past two years. I expect many of the 120,000 would be happy to work in any UK shale industry if it happens?

            • And you appear to think there is a difference between the two, offshore and onshore. The only difference is platforms are not required, sub sea stacks and associated equipment are not required, everything else is the same, well construction, pad drilling, process etc. etc.

  3. Jack- we have commented on Hurricane before. At current prices, which are due to USA fracking (ignore PhilipP and see Kepler Cheuvreux (broker)) the discovery is probably going to be just that for some while to come. For the older poster, watch your pension, dividends from the big oil companies are on the way down. But then, we still have the triple lock!!

    UKOG and IOW could be a re-run of the summer of 1066! Very good for the tourist industry.

    We might have a small group of ecos camped out on the Island, whilst t’up north the hordes led by Cuadrilla, Ineos, Igas are “rampaging” -sounds almost Viking. But then on the island the warriors will have to be released on a Monday to nip across the Solent to work at Fawley Oil Refinery, as jobs are short on the island (Harold had to release his warriors to gather their harvest-different times.) I realise the parallel falls down a little there because of the “work” reference.

    (For those of you who missed some history the Norman invasion was expected to come through IOW, and it was the weather that determined differently.)

    Modern developments will win out in both cases. In 1066 it was use of horses, in the 21st century it will be transport again (plus other by-products.)

    Funny how little changes. Now we have vineyards in the south of England, all “a result of climate change”, in Harold’s time there were vineyards as far north as Durham and the Viking ships that were built in Norway were OAK! (I will leave the “Green”land reference out, that would really be confusing.) More results from torching villages then we would expect. If only they had harnessed the wind to flatten them.

    Back to the garden, need to gather the harvest, and the seed shop is now open.

  4. Modern Developments? I know this post is about oil exploration but, as it’s been raised, if fracking for gas does has a place at all it is in the history books. That’s how backward facing an industry it is. Arguably it leapfrogs dirty coal for power gen but the next leap needs to happen fast for climate change to be taken seriously.

    You may treat global warming as a joke Martin but you’re on the wrong side of history especially if can you raise your gaze beyond these shores (Britain will be slower to experience the ferocity of climate change impacts due to the huge ice melt of Greenland keeping the North Atlantic cooler for longer).

    The respected scientific journal Nature has now published the findings that link climate change to extreme weather events and it is the mitigation of effects of global warming that far overshadow any short term gains from O&G that the world needs to focus on with considerable urgency and commitment. The difficulty for the rational, well informed types, when arguing the case, is in trying to get the long term perspective (and costs) built into the short term models of profitability that drives the frack-heads and other O&G pushers. Do take a look at the (largely user-generated footage) of the extreme events of just the last few days. You may giggle but 10’s of 1000’s won’t.. https://www.youtube.com/watch?v=sqfa6do4u50

  5. No doubt about it ; Steve Sanderson is Man of The Year .

    What an amazing exploration well BB-1 is proving to be .

    It’s not only his geological hypothesis that there is a continuous accumulation of movable oil which is significant .

    If he can prove that much of the oil has migrated from a deeper source rock and that the reservoirs recharge this could be turn out to be a truly world class discovery .

    • Agree – it appears to be huge, over a very large lateral area. It will be interesting to see how the wells (reservoir) stand up to long term production; presumably a long term test is on the cards. Perhaps some nice acid fracks in the future to enhance productivity? Just to keep this BB interested…..

    • Continuous recharge is one explanation for the Kimmeridge well which has produced (slowly) more oil than anyone has been able to map.

  6. Lighten up PhilipP. Name of the first UKOG well in the chain-“Horse Hill”!! The parallel universe theorists could have a field day.

    If you want to get serious again, why did you not refer to the warning today about likely increases in GAS prices for the UK, due to our increased vulnerability to fluctuations in price now we have no storage?

    The part of global warming I treat as a joke is those who look at youtube extreme weather events and forget that youtube has not been around that long and therefore assume that before the time of youtube there were no extreme weather events. I suspect many are too lazy to check historical sources, but they would find records of Thames freezing over on a regular basis, and before that, as I have mentioned, vineyards in Durham. Strange that in parts of Greenland they are finding seeds that were UNDER the ice ie. not embedded in it.

    However, the key point is that you will see few supporters of on shore oil and gas advocating a gratuitous increase in the UK’s use of gas and oil. We simply would prefer that whilst we continue to use oil and gas we use our own, if we find sources under our feet that are economical. If they are that, couple that with energy security (remember the mid 1970s when OPEC increased prices four fold, a cut in production and an embargo on some exports so poor old UK ended up with inflation over 25%-when I was purchasing my first house! And my sons still tell me how much easier it was in my day!) and with the reduction in the carbon footprint of producing locally and also avoiding shipping problems and risk of maritime pollution-near miss this very weekend.

    If UK can do that, then alternative energy will get the boost that a vibrant economy would produce. It certainly would not if inflation pushed over 25%. Alternative energy is like all new technologies. Initially it is usually uneconomic against more established technologies so it needs subsidising whilst it is refined, and in some cases, replaced when it fails to scale up. (See the lagoon project for S. Wales.) This will not happen if inflation goes over 25%.

    I noted Jack’s excitement about 1 billion barrels of oil for Hurricane. How much is there under the Weald? Many times that number. But, the devil will be in what percentage can be recovered. Surprisingly, that’s what a lot of exploration is about, not just discovery. I would like to find out, and the same with fracking for gas. You want to prevent both. You won’t be successful, and you probably don’t realise that if you were, it would limit alternative energy developments in the UK. A pretty good example is right there for you in USA-if you can release $6 billion from reducing the Strategic Oil Reserve, that could pay for a whole lot of alternative energy development-maybe a very long wall covered in solar panels!

  7. None so blind as those who will not see Martin.

    Firstly, while you clearly didn’t comprehend the import of the link and the Nature reference above your dismissal doesn’t wash either I’m afraid. It may reinforce you in your comfort zone but many are having to take climate change seriously right now. I’ll keep plugging away at this argument because if we waited until the time when it was staring those in denial in the face it will be too late.

    Secondly you overlook the S Curve … the developments in alternative energy including power storage technologies are very much afoot. It is only a matter of time (now looking very near term) before an accelerated transformation takes place. This link says what would take me at least a thousand words .. https://www.youtube.com/watch?v=jwHN6QQWv2g&feature=share . Some will watch it and understand even if you don’t/can’t/don’t care.

    Just to underline the fact that there are huge strides going on in the alternative energy sector here’s a list of initiatives to peruse – all show promise and none can be lightly dismissed as you would like to assume: http://www.energystoragenews.org/category/16/flow-battery/ Forward looking people will welcome the changes.

    Lastly for those who, unlike Trump, will take such presidential hearings on board with an open mind, here’s a Whitehouse presentation. Note the acerbic observation about the senators under the influence of the fossil fuel industries near the end: https://www.youtube.com/watch?v=ZM29RoeUa2M

    • PS.. just to address that point about a vibrant economy being brought about be profitable gas production – you seem to assume that alternative energy is the poor cousin. With the strike price of offshore wind power and and the rapid advances happening in the storage and micro-grid sectors it will be the other way around before onshore shale gas gets off the ground – I’d bet on that – especially if you’re costing the emissions and pollution impacts realistically.

    • Sure, Philip. As soon as they figure out a way to make that darn sun shine 24×7, and the wind to blow the same way, your pixie dust dreams will be realized.

      Though you are a firm denier of this reality, mother nature has shown the propensity to create weeks of low wind accompanied by foggy conditions over large areas. How are you going to create backup power systems that can provide weeks of power for large areas? You certainly can’t count on stealing your neighbor’s power for three weeks, can you Philip? Batteries may become economic for smoothing purposes and for correcting very short term fluctuations, but creating a system that would provide full power for weeks on end cannot happen. Not only would it be enormously expensive, but it would also require mining on a scale that is almost unimaginable to produce resources that are not used very often. I don’t think many pixie dust-sniffing greens would even sign on for that, my boy.

      Renewables are much better off if they are deployed within a robust and flexible gas-fired system. You don’t even realize it, but your dreams will be fueled by gas if they ever come to be. Much better for the environment if that gas is sourced domestically.

      • I have more faith in human ingenuity than you obviously. I’m sure the engineers who designed and built the Avro Lancaster hadn’t dreamed of an English Electric Lightning that could break the sound barrier in a vertical climb while the Lancasters were still in service! Similarly the Lightning guys wouldn’t have thought landing on the moon possible within the next decade. The potential to solve these power issues are real and do-able within the next 10-15 years, I’m convinced of it. The need is pressing and imperative. It will just take the right vision and political will to make it happen. I even think it will happen anyway but to divert political attention towards this backwards looking stuff (that you guys get so excited about) will be a huge waste of initiative and money. Let’s look to the future not the past.

      • Actually I agree that gas turbines will probably be the power plants of choice to take on the shortfalls in a flexible distributed system. There will be a long tail to gas needs but I don’t agree that fracking onshore in the UK is a good move at all.

      • Oh dear, more o$€¥£&g fracking myths! This is laughable rubbish churned out for propaganda purposes! There will be some use of capital words here, but it needs saying.
        It seems you don’t even know that you live on a planet orbiting a star pennywise/fibby? Here is a little lesson in physics for you, and not before time it seems?
        That “darn sun” ALWAYS shines! Its a star! Its a massive ball of fusion burning hydrogen and pours out radiation at all frequencies 24/7 all day every day and has done so for more billions of years than we can possibly imagine! We cant switch it off! It NEVER STOPS SHINING!
        The wind ALWAYS blows somewhere, the higher you go, the faster it gets, the jet streams reach many hundreds of kilometers an hour!
        We are so stupid we allow ourselves to be hoodwinked by the governments and energy producers into believing energy is finite, it is not, and never has been, its a con, one of the biggest amongst so very many.
        Wind energy is free and generators should be moored up in the atmosphere in the most efficient height/speed available, these can be hooked to Tesla generators which process energy most easily and either cabled to the grid below or transmitted by resonant frequency. Solar panels can either be separate or mounted on the same platforms, we can even move them around as the planet turns if we were to stop for ten minutes and agree to allow it through mutual benefit. No ground wind farms and solar farms except maybe in deserts, to upset the visually sensitive and bird lovers.
        Tide and wave are also free and are the most efficient transmitters of energy from wave to generator.
        There is ABSOLUTELY NO reason why we cant do that now, its not rocket science, its just common sense, something lacking from the o$€¥£&g monopolistic hegemony.
        Easy and simple and above all, non polluting and is not destructive of communities, is not polluting, does not require parcelling off our country to private ownership, does not require a police sate, and it is cheap technology and looks toward a carbon free future for our children.
        Lets get out of this straight jacket mind trap and do something sensible, intelligent and adult about this o$€¥£&g propaganda nonsense once and for all.

        • You do realise that wind, solar, tide, etc companies want to make a profit and won’t run their businesses free of charge? ¥ind, $olar, tid€,…..

          • The upshot, AI old thing, is we don’t need fracking, and never did, we don’t want o$€¥£&g monopoly reframing the goal posts and rampaging over out cpuntyside. Then we can get rid of one more energy extortion con racket.

            • Ooops! Not “cpuntryside” of course, but should be “countryside”? Perhaps “cpuntryside” is a “pun”?

  8. UK onshore players are timid and tentative in its operations amd development. Alot of big talk and economic promise so far but nothing to show for. Maybe except for UKOG. Take Cuadrilla and iGAS for examples both big player in shale talk up alot about their potentials but look where they are now. Nowhere. One might forgive them for the delayed progress due to planning permission process but even with approval of permit and planning permission they have done very little with it. If it is so exciting where is the push to drill and explore where is the investment. All a bit hype I think.

  9. Alternative energy is supported by the likes of Hinkley Point-I certainly wouldn’t bet on those economics. What energy storage? Gas? NO. Electricity? NO. We used to have energy storage with piles of coal, now we have a few barrels of oil, but as oil is not used in any quantity for power generation, that is irrelevant.

    I think you will find Merkel paying out 6 billion Euros to compensate the nuclear industry whilst she moves to coal and increase German carbon emissions is not the same as Trump cutting costs of $6 billion by being able to reduce the Strategic oil Reserve and reducing carbon emissions is an interesting comparison. Funny old world where she thinks she can lecture him? Well, she can, because the media will support it. The full consequences to Germany will probably come after her elections so that will be okay?

    TW-since when were Cuadrilla and IGAS both big player in shale? How about Third Energy? I think if you double check that, you will get the answer.

    PhilipP-if you can’t understand basic points, and I have made them pretty clearly, please don’t alter them to try and win a point, eg.no mention of a vibrant economy being brought about by profitable gas production. I said something quite different. This is back to the playground, and the level of debate that the SNP use,who get a few more to clap and cheer, but it still ends up the same nonsense.

    • Looking at the flooded PNR site pouring pollution into the surrounding agricultural fields that name calling epithet “swampy” applies more appropriately to frackers dont you think?

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