UKOG webpage on Isle of Wight interests
UK Oil and Gas Investments Plc announced this morning it was not seeking a time extension of an exploration licence, off the south west coast of the Isle of Wight.
In a formal statement to investors today, the company said its 100% interest in offshore licence P1916 in Compton Bay had now lapsed.
But researchers on the Isle of Wight discovered that UK Oil and Gas Investments (UKOG) surrendered the licence more than six weeks ago.
The Oil & Gas Authority, the regulator of hydrocarbon licences, confirmed to DrillOrDrop this afternoon that the surrender was effective from 18 December 2017.
One of the researchers, Sylvia May, has complained to the AIM stock market and the Financial Conduct Authority (FCA) about UKOG statements made on or after the surrender date which still listed P1916 as a company asset.
She said:
“This failure to provide accurate and timely information of assets is misleading investors and raises questions on the integrity of the UK financial system.”
UKOG told investors this morning:
“In the Company’s view the offshore Licence’s low geological prospectivity, high environmental sensitivity and consequential high associated drilling costs merited no further commitment of UKOG’s financial or technical resources. No remaining P1916 Licence obligations remain.”
Investigations
Frack Free Isle of Wight and local Liberal Democrat, Nick Stuart, have also been investigating the surrender of licence P1916.
People were first alerted that the licence may have lapsed when UKOG issued a Regulatory News Service (RNS) communication on 9 January 2018. The RNS did not refer to a licence surrender but P1916 was not on the list of company-held licences at the end of the communication.
A previous RNS on 19 December 2017 and two on 27 December 2017 stated that UKOG had interests in 10 UK licences, including P1916. Link to all RNS communications
Nick Stuart said the offshore licence was on a list of company assets on the UKOG website on 21 January 2018. Sylvia May said a page about P1916 was on the UKOG website on 28 January 2018 when she complained to AIM and the FCA.
A spokesperson for Frack Free Isle of Wight said:
“Interesting to see UKOG have finally informed their investors they no longer hold P1916. But six weeks after the date OGA say they surrendered the licence, 18th December 2017. The licence was due to expire today, 31st January 2018.
“So why would UKOG delay the announcement until now when they knew they had surrendered it 6 weeks ago? It doesn’t exactly inspire confidence in the company’s integrity.”
UKOG first acquired an interest in P1916 in 2014 from Northern Petroleum PLC. A UKOG document in 2015 valued it at $12.5m-$69m. The licence was extended in January 2017 for a year.
DrillOrDrop invited UKOG to comment on concerns that for several weeks investors may have believed that the company held P1916 when it had already been surrendered.
A UKOG spokesperson said:
“We were obliged to give a month’s notice to the OGA, which we adhered to. The Licence expired today.”
Onshore island interests
UKOG still has onshore interests on the Isle of Wight. Today’s RNS said the company was focusing on the oil licence PEDL331 at Arreton in the centre of the island.
UKOG said its consultants, Xodus, had estimated 227 million barrels of oil in place in the area and 15.7 million barrels recoverable. If this were accurate, it would give UKOG, with its 65% interest, 10.2 million barrels.
The company said it was preparing applications to carry out drilling in the licence area in the first half of 2019.
UKOG’s Executive Chairman, said:
“The Arreton discovery on the Isle of Wight’s remains a key element of the company’s 2018 and 2019 growth strategy and plans. We look forward to working with our partners towards a successful 2019 appraisal drilling campaign.”
Keith Taylor (centre) with campaigners against hydrocarbon drilling on the Isle of Wight, 20 January 2018. Photo: Office of Keith Taylor MEP
Keith Taylor, the Green Party’s MEP for the Isle of Wight, said:
“While UKOG gives with one hand, by surrendering its Compton Bay drilling licence, it slaps the people of the Isle of Wight in the face with the other, by announcing destructive plans for onshore drilling in the village of Arreton.”
Mr Taylor, who visited campaigners on the island earlier this month, said:
“The further exploitation of oil and gas resources either by conventional or unconventional means is a form of dangerous climate denial, especially when the Island has the capacity to be a world-leader in renewable energy production.
“I will stand by the local campaigners and residents who will be fighting to protect their environment, their communities and the planet by opposing UKOG’s plans tooth and nail.”
Categories: Industry
DRILL OR DROP? 
Well, the UKOG share price really reacted dramatically to the “delayed” news today, didn’t it? Must have been so important to the market.
Can’t see this exciting too many, whether share holders or not. Simply a company looking to focus upon certain areas and recognising this other area has more costs and difficulties than they want to include within a growing activity diary.
And yet UKOG until only recently did put across they were excited about the M Prospect and have been ‘preparing drilling planning submission for P1916 for about the last 2 years. I wonder what that preparation entailed? Jotting it on their to do list perhaps?
Perhaps they have identified better options as time has passed? After all, they have been quite busy elsewhere, which might have allowed this to be reconsidered. It is also rumoured they are looking to increase activities elsewhere.
Some people will have bought a diesel a short while ago, but might revisit that decision now?
But I doubt they’d wait 6 weeks to break the news to the missus 😉
Unless the missus had been away for the last 6 weeks. The licence expired today, they issue the RNS today.
The moaning mob ain’t happy when we’re going to drill and it now seems ain’t happy when we aren’t. I stopped taking them seriously many moons ago.
Are you going to add the lovely photo to your catalogue of hard-nut, lefty, extremist, activists GBK? They look like a real bunch of terrorists don’t they 🙂
https://www.theguardian.com/lifeandstyle/2018/jan/31/hunky-tory-attractive-people-more-likely-to-be-rightwing-study-finds
Skin deep values for skin deep people. No wonder the Right is in such a mess.
Indeed, they’ll be trumpeting the superiority of blonde hair and blue eyes as official next. Oh wait the right-wing radicals have already gone down that slippery slope. Talk about delusions of grandeur.
More investors been ripped off for the past 6 weeks. Proper #ponzischeme this is turning out to be. Surely can’t be many more mug punters left now though.
Really FLFS!
How many investors been investing for this in the last 6 weeks??
The data is there reference share price movement in the last 6 weeks. And since this RNS-the share price actually increased after the RNS! You could even have a look at the comments from the investors if you wanted to, and would find that generally there was support for this move around the costs of drilling on land versus on water and the projected rewards for either. I know if the facts don’t fit, then just make them up is where the antis have moved to, but when it is so obvious, it is a little pointless.
Yes, PhilipP, one for the catalogue.
“Keep fracking off the Isle of Wight”. Mr. Taylor has obviously had an impact-but shame they seem to have been confused and not researched the issue fully. What were you saying yesterday about homework?
Of course you saw through UKOG’s tardy updates immediately Martin ☺ Looks like the IoW community had been doing their homework .. very smart of them to prioritise renewable energy .
Wish me luck PhilipP.
Just made my “No crack here” poster and about to surf a JCB (diesel!) at the local building site, as we all know that amongst the 70 houses being built one could end up a crack den in the future. I’m sure the builders will understand the precautionary principle and welcome me with hot mugs of tea and an appropriate greeting, when I refer them to Mr.Taylor and his Green’s adoption of the philosophy.