UKOG releases oil resource estimates as it considers change in company status

Markwells Wood 6 Ann Stewart

UKOG’s Markwells Wood site. Photo: Ann Stewart

UKOG announced today it was considering changing its status from an investment company on the AIM junior stock exchange.

In a statement to shareholders, it said it was looking at re-admission to AIM as an operating company.

A report, issued with the statement, put total recoverable oil resources at 21 million barrels (MMbbl) for the company’s portfolio of sites and licences.

UKOG said the report was “compiled as part of the necessary preparations for such an event”. It said:

“Any such re-admission and change of trading status would be conditional on the publication of a re-admission document and shareholder consent to cease as an investment company. Further detail will be provided when the Company has finalised its future corporate growth strategy and plans.”

The 21 MMbbl total comprised:

  • 13.2 MMbbl discovered contingent resources from five oil fields and discoveries (Avington, PEDL70; Baxters Copse, PEDL233; Horse Hill, PEDL137 and 246; Isle of Wight onshore, PEDL331; Markwells Wood, PEDL126)
  • 7 MMbbl prospective resources in the Arreton (Isle of Wight) and Holmwood (Surrey) prospects
  • 85,000 barrels from stable production in the Horndean field in Hampshire

The figures, compiled by the Xodus Group, did not include Kimmeridge Limestone potential resources or estimates for Broadford Bridge, in West Sussex. They did include Markwells Wood, where UKOG lost site access last year (DrillOrDrop report).

Stephen Sanderson, UKOG’s Executive Chairman, said this was the first evaluation of the company’s conventional assets. He said:

“We now look forward to the forthcoming production testing campaign at Horse Hill, the first of a series of planned near continuous appraisal drilling and testing programmes designed to transform the CPR’s [Competent Person’s Report] recoverable resources into permanent production and reserves.”

Status of sites

171223 Broadford Bridge drone 1 BBAG

Broadford Bridge, 23 December 2017. Broadford Bridge Action Group

UKOG also gave an update on the sites where it has an interest:

Avington: Oil field currently in production. Field currently shut in

Baxters Copse: Oil discovery pending development and/or appraisal drilling. Appraisal/development well planned; licence extended to 2018.

Broadford Bridge licence: Two wells, BB-1 & 1z, completed. Two further planning applications under preparation [though probably not at Broadford Bridge].

Holmwood: Holmwood-1 (Bury Hill Wood) exploration well planned in 2018

Horndean: Oil field currently in production. Field in stable production

Horse Hill: Production tests and further appraisal well(s) scheduled for 2018

Isle of Wight (Onshore): Oil discovery pending development and/or appraisal drilling. Preparing Arreton-3 oil discovery appraisal well planning submission

Markwells Wood: Oil discovery pending development and/or appraisal drilling. Revised drilling and testing planning application underway

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