Industry

UKOG announces well testing has stopped at Broadford Bridge

171223 Broadford Bridge drone 1 BBAG

Broadford Bridge in West Sussex, 23 December 2017. Photo: Broadford Bridge Action Group

UK Oil & Gas Investments announced this afternoon that well testing operations had ceased at the Broadford Bridge oil exploration site near Billingshurst in West Sussex.

In a brief statement to investors in the past hour, the company said:

“Equipment is being removed from the site and the company will update the market once data and test results have been assessed.”

The statement did not indicate when or if the company would return.

Investors photographed lorries removing equipment from Broadford Bridge today. In comments on social media, they urged the company to release information.

Earlier this month, UKOG announced that the Oil and Gas Authority had extended consent for flow testing at Broadford Bridge until the end of the month.

In February, shares in the company dropped more than 35% following the announcement of possible formation damage in the well. (DrillOrDrop report and UKOG statement)

The company said then:

“Serious consideration is being given to a possible future short sidetrack and selective re-test of KL3 and KL4 which electric logs show as oil saturated.”

The current planning permission at Broadford Bridge is for flow testing only. A spokesperson for West Sussex County Council told DrillOrDrop earlier this month:

“If the company wishes to drill a sidetrack, it will need a new planning permission. As below, Condition 2 of planning permission WSCC/029/17/WC states that the permission only allows testing and restoration/retention, not mobilisation or drilling.”

Broadford Bridge decision condition extract

Extract from the West Sussex County Council decision notice for Broadford Bridge

 

UKOG’s share price fell more than 20% following the release of today’s statement, from 1.32p to 1.10p at the time of writing (3.15pm).

180321 UKOG shares

Reaction

A spokesperson for Broadford  Bridge Action Group, which opposes UKOG’s operations at the site said:

“It’s about time – they originally promised the flow testing would only last 14 weeks and be finished by Christmas. Given their shareholder announcements so far it is likely they have found very little oil. The economics of this industry don’t add up and the risk to the environment doesn’t make it worthwhile. Let’s hope investors switch to renewables for a better long term return.

“Meanwhile we will continue to monitor the restoration at Broadford Bridge, support all sites still under threat and be vigilant for any new applications.”

Horse Hill

HORSE HILL FRACKING

Initial flow testing at Horse Hill. Photo: Eddie Mitchell

In this afternoon’s statement, UKOG said the focus would now shift to Horse Hill, the so-called Gatwick Gusher in Surrey. UKOG is the leading partner in the site operator, Horse Hill Developments Ltd.

In November 2017, Surrey County Council approved an application for extended flow testing and additional drilling at Horse Hill. Several planning conditions still have to be met before operations can begin.

UKOG said today:

“An extended well test of the Horse Hill-1 oil discovery will commence once all regulatory approvals are in place.”

Markwells Wood

markwells-wood-3-edited

Markwells Wood in West Sussex. Photo: DrillOrDrop

Today’s statement includes for the first time, under UKOG’s licence interests, that a “revised drilling and testing planning application” is underway at the UKOG site at Markwells Wood in the South Downs National Park.

DrillOrDrop reported last week that the national park authority had issued a Breach of Condition Notice for Markwells Wood, where there has been no planning permission in force for 18 months.

The notice ordered UKOG to remove equipment and hard standing from Markwells Wood within six months and restore it to woodland within a year.

UKOG said in November 2017 that it would submit a revised application before the end of the year but none had been published.

Injunction

180319 UKOG injunction2

Opponents against UKOG’s injunction at the High Court on 19 March 2018. Photo: DrillOrDrop

On Monday (19 March 2018) UKOG sought an injunction at the High Court in London against protests at all three exploration sites. DrillOrDrop report

A senior court official delayed a decision on the draft order for about six weeks.

Five women from Sussex and Surrey, including the actor Sue Jameson, are challenging the injunction.

A hearing on whether their costs will be capped is due on 29 March 2018.

 

21 replies »

  1. I’ve never liked UKOG or ANGS. You’d have been bit nuts to buy into those two but I’m a more seasoned investor and stayed well away. There are safer opportunities out there. That’s coming from a pro O&G investor not a lefty!

    • Two down, the slippery slide down the dumps started by Third has gained its inevitable momentum. UKOG has lost credibility ready for its defeat in the courts.

      Dear dear, how sad, never mind!

  2. What a shambles , SP is down further now and close to the original placement of 0.8p when a company has the front to accuse protestors of costing it money it should at least be making something , UKOG have done themselves so much more damage than a few people slow walking a lorry or waving banners whilst eating cake at the gate . Perhaps they should reconsider the injunction and save themselves cash that they don’t have.

  3. Dear GottaBKidding, What’s a pro O&G investor? Is it a person that doesn’t actually do or produce anything, preferring to make money from other people’s efforts or misfortunes? Or is it something else? I’d be really interested to know. Best wishes, Jonathan.

    • It sounds to me like you don’t understand how the world revolves Jonathan, I’ll pass on explaining it though as tad too busy living my life 😎

      • You’re not too busy to post on here regularly GottaBKidding. Or is that what you mean by ‘living your life’? 😎

    • Jonathan
      It could be someone invested in Shell, bp, Ophir, Genel and so on. It could be a pension fund, investment fund or a person. Similar to anyone investing in renewables, a pro renewables investor I guess, making money from others efforts and misfortune, or fortune.

      • Dear hewes62, I’m just not particularly fond of unfettered, relatively unregulated, and relatively unprincipled capitalism. The net result of it appears to make the rich richer (the investors) and the poor poorer (everyone else). Where will it all lead? I’m already horrified at Nestlé seeking to monopolise drinking water in the US. God knows what’s next? Whilst travelling in India recently I came across a hotel in Delhi that markets itself as offering the purest air in the Indian capital. Surely drinking water and non-contaminated air should be freely available to everyone? Dystopia appears to be very much just around the corner.

        • Jonathan
          Me neither re unbridled capitalism. Re water, I think you need to pay, otherwise no one creates it, or we just waste it. This does not mean I support private water companies, but clean, potable water has to be worked for. Otherwise we will have to go back to drinking weak beer.
          Air is a bit different, but my experience is that the closer you live to large centres of population and production, ( not the UK, now SE Asia , China, India etc, the worse off you are.

  4. Perhaps a pro oil and gas investor is someone who might enjoy receiving good dividends-as the industry leaders are known for that. Hence their strong position in many a pension fund. Pretty much the opposite of Tesla, to help explain it. Obviously doesn’t apply to UKOG-yet! But then the investment decision for both Tesla and UKOG the same-a big gamble, based upon future prospects. I wonder how the lifestyles of SS and Mr. Musk compare?

    • Do i detect a smidgen of angst there? Don’t gamble what you cant afford to lose, unless of course you expect the tax payer to pick up the tab cleaning up the mess? One can only wonder if any reinstatement and return to a pristine condition will actually ever be achieved within the time restrictions at Broadford Bridge either?

    • How can you possibly compare SS and Elon Musk? Elon Musk innovates and creates and is particularly invested in products that are responding to ecological concerns. SS doesn’t, and isn’t. As for lifestyles, Elon Musk is courted by influential decision makers and is very much in the limelight. SS rarely even issues an RNS. Both homo sapien. Beyond that?

  5. Beyond that? Neither make a profit to return to those who fund their business. One does it on a relatively small scale, the other on a massive scale. Just because you support one area of business activity compared to another, finance is nothing to do with that sort of emotion. The only reason Tesla may do better than UKOG as a gamble is that so much more money is tied up, there will be more inclination to make it work. But, it is still a gamble. The “mighty” can fall very quickly, and very significantly-see Facebook!

  6. 9 months ago SS was a God and could do no wrong , today investors would like to see him hung from the redundant press viewing platform , during that time he took a very comfortable salary and talked of retiring to the Bahamas . He may as well have been there for what he has done at BB , more chance of seeing Lord Lucan .

  7. “Relatively unregulated and relatively unprincipled capitalism.” You mean like a £1.85 BILLION pay deal for Mr. Musk, agreed today? Some investors seem pretty desperate to get him to convert his ideas into a profitable business.

  8. I hope the Judge at the injunction hearing notes that share values fell as a result of photos by INVESTORS being published online! Are UKOG going to take legal action against them too? Shows how ridiculous they, their company, PR and legal team, Eclipse security clowns are, in their pursuit of greed and the desutruction of democracy! Perhaps they should sue whoever thought they should drill in the first place. It’s caused them the biggest losses (except for SS of course).

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