UK Oil & Gas Investments PLC (London AIM and ISDX: UKOG) has told DirectorsTalk its audited results for the year ended 30 September 2015. The full results will shortly be made available on the Company’s website: www.ukogplc.com, and are intended to be posted to shareholders at the end of next week.
CHAIRMAN’S STATEMENT (INCORPORATING THE STRATEGIC REPORT)
FOR THE YEAR ENDED 30 SEPTEMBER 2015
I am pleased to present the annual report and accounts for UK Oil & Gas Investments PLC and its subsidiaries (“Group” or “UKOG”) for the year ended 30 September 2015. Some of the key highlights are summarised below:
— Truly ground-breaking initial results from Horse Hill. UKOG will now seek new regulatory permissions to conduct a long term production test.
— Farmed in to the highly-promising Holmwood licence for an initial 20% interest, increasing to 30%.
— The Oil and Gas Authority offered UKOG and its partners the PEDL331 Isle of Wight onshore licence.
-- UKOG completed its acquisition of three UK subsidiaries of Northern Petroleum Plc.
— UKOG currently has 21.3 million barrels of net attributable P50 Contingent and Prospective Resources, not including Horse Hill nor the Isle of Wight.
This has been a significant period for UKOG where our key investments and assets have shown substantial progress towards realising their full economic potential. Much of the progress has come from the intense effort by the technical team and the related investment in cutting edge science and technology by our investee companies. These technical efforts also provided the basis for key further acquisitions during the period.
UKOG further increased its interest in the Weald Basin Horse Hill licences through further acquisitions of shares in the Horse Hill operator, Horse Hill Developments Ltd (“HHDL”). Subsequent to the period end we announced that regulatory consents were in place in order to carry out flow testing of the Horse Hill-1 (“HH-1”) oil discovery. Testing of three zones in the HH-1 well commenced on 08 February 2016.
Of great significance to UKOG is the recent news that the initial HH-1 flow test within the Lower Kimmeridge limestone was a success beyond our expectations. The sustained natural flow rates exceeding 450 barrels per day, of dry, 40 degrees API oil, were obtained from the Lower Kimmeridge limestone over a 3-day period without significant pressure depletion. I had the privilege to witness the first two 170-barrel road tanker oil-exports leave for the refinery, a major milestone for UKOG. The far higher than expected sustained natural flow rates demonstrate that commercial flow rates are achievable from this rock even using a vertical well.
I should stress that this was a truly ground-breaking operation, as this was the first ever test of this rock unit in the United Kingdom. The results have proven our new geological concept that light, sweet, moveable oil exists within the Kimmeridge section in the Weald Basin. This update provides further confidence in the estimates of possible recovery factors from the significant tight oil in place (“OIP”) within the Kimmeridge of our licences, previously reported from Nutech and Schlumberger’s studies undertaken last year.
Simply put, the flow test accelerates the Horse Hill Kimmeridge project and the Kimmeridge within our other interests in the Weald Basin, from geological concept to a potentially viable commercial project.
HHDL now plan to obtain new regulatory permissions to return as soon as practicable to the HH-1 site to conduct a long term production test. This will likely utilise a horizontal side-track well to potentially further improve the flow rates seen to date, and to establish the likely volume of recoverable oil per well.
As a result of the findings of the HH-1 well and the comprehensive technical studies carried out by experts such as Nutech and Schlumberger, UKOG’s investee companies are in a vanguard position in developing the Kimmeridge play over our licences and the wider Weald Basin.
In order to exploit the knowledge gained and commercial advantage from HH-1, UKOG farmed in to the highly promising Holmwood licence, immediately to the west of Horse Hill, for an initial 20% interest, increasing this interest to 30% after the reporting period. This asset now forms a further key piece of UKOG’s core Weald Kimmeridge and Portland growth strategy. The acreage contains a Horse Hill Portland look-alike prospect plus the continuation of the now proven Kimmeridge limestone oil play. We will use our key recent knowledge to maximise the benefit from the Holmwood-1 exploration well which is planned to be drilled in late 2016 or early 2017.
During the reporting period UKOG applied for one large licence on the Isle of Wight which contained similar potential and plays to our existing P1916 licence and core assets in the Weald. The Oil and Gas Authority (“OGA”) offered UKOG and its partners the PEDL331 licence onshore Isle of Wight after the reporting period in December 2015.
UKOG had proactively commissioned a recoverable resources analysis of PEDL331 prior to the licence offer and was thus able to report in January 2016 that the licence contained a potentially significant undeveloped oil discovery plus two look-alike undrilled conventional oil prospects. The addition of this licence is very material for the Group as it increased UKOG’s net P50 Contingent Resources within conventional reservoirs by a factor of three to almost 14 million barrels recoverable (“MMBBL”). The Group’s overall net recoverable resources increased five-fold to 21.3 million barrels with the addition of the licence.
Early in the reporting period, UKOG completed its acquisition of three UK subsidiaries of Northern Petroleum Plc (“NOP”) and has further consolidated these investments during the reporting period.
The Markwells Wood oil discovery, acquired in the NOP transaction, was the subject of the Group’s first operated Competent Person’s Report in September 2015, adding substantive net Contingent Resources to our recoverable resource base. More importantly, we are now preparing a Field Development Plan and the necessary regulatory permissions in order to develop the field utilising horizontal wells and new non-massive fracking based reservoir stimulation technology that does not involve massive hydraulic fracturing (“fracking”).
As of 1 January 2014, together with UKOG’s indirect interest in the Brockham and Lidsey oil fields, UKOG had estimated net attributable P50 reserves of 91,954 barrels of oil (see Table 1 below).
At the time of writing, UKOG also has 21.3 million barrels (“MMbbl”) of net attributable P50 Contingent and Prospective Resources (see Table 2 below). Table 2 does not include any net resources for Horse Hill, pending the completion of flow testing, nor does it include net resources for the Isle of Wight P1916 M prospect.
Gross unrisked OIP for UKOG’s licence interests are shown in Table 3. These OIP volumes are dominated by the tight OIP estimated for the Horse Hill licences. Two independent estimates of OIP, of similar magnitudes, were completed by specialist companies Nutech and Schlumberger. UKOG is now currently completing flow testing of three separate intervals within the Horse Hill-1 oil discovery well.
UKOG’s UK EXPLORATION, DEVELOPMENT AND PRODUCTION PORTFOLIO
Note: As noted in the Group’s previous announcements, all estimated OIP volumes in this report announcement should not be construed as Contingent Resources, Prospective Resources or Reserves.
Horse Hill Developments Limited (“HHDL”), Licences PEDL137 and PEDL246, Weald Basin
— Preliminary results of the HH-1 well were announced on 24 October 2014, 5 November 2014 and 17 December 2014, stating that an oil discovery was made in the Upper Portland Sandstone, with oil shows and elevated gas readings in the underlying Kimmeridge shales and limestones.
— In March 2015, in two separate transactions, UKOG increased its direct interest in HHDL by a further 10%, from 20% to 30% for total consideration of GBP932,000 (in cash and shares). Together with UKOG’s indirect interest in HHDL via Angus Energy, UKOG’s economic interest in the Horse Hill licences is now 19.96%.
— On 18 March 2015 and 9 April 2015, UKOG announced that further well analysis, by UKOG and by Nutech had determined that the well data implied an OIP volume of 158 MMbbl per square mile within a 653 feet aggregate pay section, primarily within three limestones and interbedded shales of the Kimmeridge, and the shales of the Oxford and Lias sections. Approximately 72% of OIP, or 114 MMbbl, lies within the Upper Jurassic Kimmeridge interbedded limestone and shale sequence.
— On 13 May 2015, UKOG announced that the OGA had granted a one-year extension to the PEDL137 exploration period to 30 September 2016. The PEDL137 licence provides for a potential Production Period of 19 years.
— On 5 June 2015, UKOG announced that Schlumberger’s independent review of OIP at the HH-1 discovery is 271.4 MMbbl per square mile.
February 26, 2016 02:01 ET (07:01 GMT)
— On 18 June 2015, UKOG announced that Nutech calculated that the total Jurassic shale plus tight conventional reservoir section contained in the 55 square miles of UKOG’s two Horse Hill licences (PEDL137 and PEDL246) is a Best Estimate, or P50, OIP of 9,245 MMbbl. The most significant OIP within the Jurassic section is contained within the shales and tight conventional reservoir limestone sequences of the Kimmeridge, with a calculated Best Estimate, or P50, total Kimmeridge OIP of 5,230 MMbbl.
— On 26 August, UKOG announced that Schlumberger calculated a mean OIP in the two Horse Hill licences of 10,993 MMbbl.
— On 5(th) October, UKOG announced the results of a conceptual Weald Kimmeridge Limestone tight oil development study by Xodus. This showed that future developments could respect the rural beauty and way of life of the locality by putting wellheads and pumps below ground level and controlling production to minimise HGV impact on local road infrastructure.
— On 21 October 2015, UKOG announced that Nutech had calculated a gross tight OIP of 15,700 MMbbl in UKOG’s eight licences in the Weald Basin. Nutech calculated that 124,000 MMbbl of tight OIP was contained in their 1,261 square mile study area in the Weald Basin.
— On 4 January 2016, UKOG announced that all regulatory consents were in place for HHDL to carry out flow testing of the Horse Hill-1 oil discovery.
— On 16 and 17 February 2016, UKOG announced the results of two flow test on the Lower Kimmeridge Limestone;
— Flow commenced at around 10.00am GMT on 15 February at an initial instantaneous rate in excess of 700 barrels per day using a 1-inch choke, in an approximate mix of 50:50 oil to water. The well was then choked back to 32/64 inches resulting in a steady early oil rate in excess of 463 barrels of oil per day over a further 7.3-hour period, in an approximate mix of over 99% oil and less than 1% water.
— UKOG announced that flow re-commenced at around 07.45 am GMT on 16 February at a steady oil rate in excess of 456 barrels of dry oil per day over a further 9.5-hour period using a smaller 28/64-inch choke in order to further stabilise the flow.
— Flow test operations will now move to the shallower Upper Kimmeridge limestone and Portland sandstone zones at approximately 840 and 615 metres below ground level, respectively, once the Lower Kimmeridge testing is completed.
Holmwood Licence (PEDL143)
— On 29 June 2015, UKOG announced that it had executed a farm-in for a 20% interest in the Holmwood licence.
— The Holmwood licence lies immediately west of the Horse Hill licence PEDL137, to the south of the Brockham oil field. UKOG sees exploration prospectivity very similar to Horse Hill in the Holmwood licence. The licence contains a well define Portland sandstone look-alike to the Horse Hill and Collendean Farm oil discoveries. In addition, Nutech calculated that the Kimmeridge limestone play, now proven by HH-1, extends over the entire licence together with the underlying Kimmeridge, Oxford Clay and Lias limestone and shale tight oil plays. The Holmwood well will test the Portland and Kimmeridge objectives and be drilled in the late winter of 2016/17.
— On 23 September 2015, UKOG announced that Surrey County Council had given planning permission for the drilling of the Holmwood-1 exploration well.
— On 23 November 2015, UKOG announced that it had executed a second farm-in to Holmwood, bringing UKOG’s licence interest to 30%.
Isle of Wight, P1916 and PEDL331
— On 28 October 2014, UKOG jointly applied for an approximately 200 km(2) onshore Isle of Wight licence (UKOG 65%), adjacent to the offshore Isle of Wight licence (P1916), proposing a firm exploration well and seismic, as part of the UK’s 14(th) Landward Licence Round (“14(th) Round”).
— After the reporting period, in December 2015, OGA offered this onshore Isle of Wight licence (PEDL331) to UKOG and its co-venturers.
— In January 2016, UKOG announced the results of an indpendent volumetric analysis by Xodus Group (“Xodus”) of the Arreton-2 oil discovery (“Arreton Main”) and the adjacent low-risk Arreton North and South Prospects (“Arreton Prospects”). Gross P50 OIP of 219 MMbbl was estimated for Arreton Main and the Arreton Prospects. Xodus estimated net P50 Contingent Resources of 10.2 MMbbl for Arreton Main, and net P50 Prospective Resources of 6.8 MMbbl for the Arreton Prospects.
— The offer of PEDL 331 will permit the M prospect to be drilled from an onshore location. Preliminary meetings to discuss the M prospect and Arreton-3 well sites and regulatory permitting were held with the Isle of Wight Local Planning Authority in summer 2015.
— On 25 March 2015, UKOG announced that within P1916, the main prospective Portland limestone and Triassic Sherwood sandstone reservoir objectives in the undrilled “M Prospect” contained potential unrisked OIP volumes of 40 MMbbl and 76.5 MMbbl respectively. A gas only case for the Triassic Sherwood estimated a potential gross gas in place (“GIP”) volume of 197 billion standard cubic feet of gas (“bcf”). An independent review of recoverable prospective resources by Xodus is nearing completion.
— On 15 June 2015, the Board announced a one-year extension to the P1916 offshore Isle of Wight licence.
Markwells Wood Oil Field and Baxters Copse Oil Discovery
— As announced in February and March 2015, UKOG, via two separate transactions, increased its working interest in the PEDL126 Markwells Wood to 100%.
— On 13 May 2015, UKOG announced that OGA had granted one-year extensions to the exploration period of the PEDL126 Markwells Wood and PEDL233 Baxters Copse licences.
— On 14 September 2015, UKOG announced that a Competent Person Report (“CPR”) by Xodus had calculated P50 net Contingent Resources for the Markwells Wood oil field of 1.25 MMbbl.
— On 16 October 2015, UKOG announced that the Markwells Wood Planning Permission had been extended until 30 September 2016.
— The commercial prospectivity of the Baxters Copse oil discovery is still under technical evaluation by the Company and the operator IGas Energy Plc (“IGas”).
UKOG (GB) Limited, UKOG Weald Limited and UKOG Solent Limited- Horndean and Avington Producing Oil Fields
-- UKOG completed its Northern Petroleum Plc ("NOP") acquisition on 17 October 2014.
— The NOP companies were re-named UKOG (GB) Limited, UKOG Weald Limited and UKOG Solent Limited.
— Five UK licences were acquired from NOP, four onshore and one offshore, all located in the South of England.
-- Four assets are in the Weald Basin, one in the analogous Wessex-Purbeck-Wight Basin.
— The assets include the Horndean onshore producing oil field (UKOG (GB) interest 10%) and Avington onshore producing oil field (UKOG (GB) interest 5%), an offshore Isle of Wight exploration licence (UKOG Solent interest 77.5%) and the Baxters Copse (UKOG Weald interest 50%) and Markwells Wood (UKOG (GB) interest 100%) onshore Jurassic Great Oolite oil discoveries.
-- Horndean and Avington continued stable oil production throughout the period.
Lidsey and Brockham Producing Oil Fields: Angus Energy Limited (“Angus Energy”)
— UKOG has a 6% share ownership of Angus Energy, which operates and produces oil from both the Lidsey and Brockham oil fields in the Weald Basin.
— The Brockham field is the closest analogous Portland sandstone producing oil field to the Horse Hill-1 Portland sandstone discovery. Lidsey produces from the same Great Oolite limestone reservoir as UKOG’s Horndean and Avington oil fields and the Markwells Wood and Baxter’s Copse oil discoveries.
— Angus Energy is a 12% owner of HHDL. Angus Energy reduced its ownership in HHDL down from 40% during the reporting period and subsequent to the year end reduced its ownership from 17% to 12%.
-- Angus Energy plans to drill a side-track at Brockham and a new well at Lidsey.
NEXT PERIOD
In the next twelve-month period the Directors expect to see a number of positive developments for the Group.
— HHDL expects to complete the two remaining flow tests of the Horse Hill well operation in the Upper Kimmeridge limestone and Portland sandstone. We plan to return to the well to conduct a long term production test and horizontal sidetrack well, to establish the most likely expected recoverable volume of oil from the well. Preparations are now underway to submit the necessary documentation to acquire the regulatory permissions to proceed towards further appraisal and development of one or more zones of the well. These permissions will include the capability for additional phases of development drilling.
— UKOG is well advanced in the construction of a Field Development Plan for the Markwells Wood oil discovery (UKOG 100% and Operator). This will likely be completed and submitted to the OGA by June 2016. Planning permission will also be sought from the South Downs National Park Authority before end 2016.
— UKOG will finalise the onshore Isle of Wight licence (PEDL331, UKOG 65%) with OGA, following the 14th Round award.
— UKOG will continue with well design and preliminary regulatory steps necessary to drill an appraisal well on the Arreton Main oil discovery in PEDL331 (UKOG 65%) and an exploration well on the M Prospect in P1916 offshore Isle of Wight (UKOG 77.5% and Operator).
— UKOG is considering drilling an appraisal well on the Baxters Copse discovery (IGas 50% Operator, UKOG 50%).
— New production wells are being planned on two of Angus Energy’s producing licences (Lidsey and Brockham).
— UKOG plans to continue to expand its licence position in the UK onshore, particularly in its core Weald Basin tight-oil plays, with additional exploration, development and production investments. The UK onshore continues to be an attractive buyer’s market for assets given the Company’s cash position.
(MORE TO FOLLOW) Dow Jones Newswires
February 26, 2016 02:01 ET (07:01 GMT)
Your Board of Directors will continue to seek out further attractive investments in line with the UKOG’s investment strategy.
UKOG RESERVES, RESOURCES AND OIL IN PLACE
Table 1 shows gross and net reserves (effective 1 January 2014) for UKOG’s four producing fields
Table 1: UKOG’s Producing Fields, Gross and Net Reserves
Asset Licence UKOG's Gross Reserves Net Reserves Source,
Interest (MMbbl) (bbl) (1) Date
---------- --------- --------- ------------------------- -------------------------- ----------------
P90 P50 P10 P90 P50 P10
---------- --------- --------- ------- ------- ------- ------- ------- -------- ----------------
IGas/Senergy,
Horndean PL211 10% 0.717 0.856 1.143 71,700 85,600 114,300 July 2014
---------- --------- --------- ------- ------- ------- ------- ------- -------- ----------------
IGas/Senergy,
Avington PEDL070 5% 0.040 0.063 0.125 2,000 3,150 6,250 July 2014
---------- --------- --------- ------- ------- ------- ------- ------- -------- ----------------
Angus/RPS,
March
Lidsey PL241 4.2% 0.0127 0.0360 0.0547 533 1,512 2,297 2014
---------- --------- --------- ------- ------- ------- ------- ------- -------- ----------------
Angus/RPS,
March
Brockham PL234 3.6% 0.0179 0.0470 0.1015 644 1,692 3,654 2014
--------- --------- ------- ------- ------- ------- ------- -------- ----------------
TOTALS 74,878 91,954 126,501
--------------------- ------- ------- --------
Note:
1. UKOG net share. NB:
units are barrels, not
MMbbl.
Table 2 shows unrisked gross and net resources for UKOG’s four oil discoveries and three exploration prospects.
Table 2: UKOG’s Unrisked Gross and Net Resources
Asset Licence UKOG's Gross Resources Net Resources Source,
Interest (MMbbl) (MMbbl) (1) Date
---------------- ---------- ---------- -------------------- ---------------------- --------------
P90 P50 P10 P90 P50 P10
---------------- --------- ---------- ----- ----- ------ ------ ------ ------ --------------
Xodus,
Markwells September
Wood (2) PEDL126 100% 0.63 1.25 2.71 0.63 1.25 2.71 2015
---------------- ---------- ---------- ----- ----- ------ ------ ------ ------ --------------
Holmwood Europa/ERCE,
(3) PEDL143 20% 0.81 3.36 12.51 0.16 0.67 2.50 June 2012
---------------- ---------- ---------- ----- ----- ------ ------ ------ ------ --------------
Baxters IGas/Senergy,
Copse (2) PEDL233 50% 3.11 4.67 6.23 1.56 2.34 3.11 July 2014
---------------- ---------- ---------- ----- ----- ------ ------ ------ ------ --------------
Xodus,
Arreton January
Main (2) PEDL331 65% 9.9 15.7 24.10 6.4 10.2 15.7 2016
------ ------ ------
Arreton Xodus,
Prospects January
(3) PEDL331 65% 4.0 10.5 21.60 2.6 6.8 14.0 2016
------ ------ ------
Angus/RPS,
Lidsey (2) PL241 4.2% 0.20 0.41 0.62 0.01 0.02 0.03 March 2014
---------------- ---------- ---------- ----- ----- ------ ------ ------ ------ --------------
TOTALS 11.39 21.30 38.06
---------------------------- ------ ------ ------
Note:
1. UKOG net
share.
2. Contingent
Resources.
3. Prospective
Resources.
Table 3 shows unrisked gross OIP for all of UKOG’s current 11 licences.
Table 3: UKOG Unrisked Gross OIP
Asset Licence UKOG's OIP (MMbbl) Source, Date
Interest or GIIP (bcf)
---------------- ----------- ---------- -------------------------- ------------------
Low Best High
---------------- ---------- ---------- ------- -------- ------- -----------------
Offshore
Isle of Wight
- M Prospect UKOG, March
Oil P1916 77.5% 37.4 106.6 239.2 2015
------------------
Offshore
Isle of Wight
- M Prospect UKOG, March
Gas (1) P1916 77.5% 56.8 184 426 2015
---------------- ----------- ---------- ------- -------- ------- ------------------
Onshore Isle Xodus, January
of Wight PEDL331 65.0% 144 219 322 2016
---------------- ----------- ---------- ------- -------- ------- ------------------
Markwells Xodus, September
Wood PEDL126 100% 32.7 45.6 61.8 2015
---------------- ----------- ---------- ------- -------- ------- ------------------
Europa/ERCE,
Holmwood PEDL143 20% 3.83 15.38 55.38 June 2012
---------------- ----------- ---------- ------- -------- ------- ------------------
Northern/RPS,
Horndean PL211 10% 27.4 56.1 110.2 Feb 2010
---------------- ----------- ---------- ------- -------- ------- ------------------
IGas/Senergy,
Avington PEDL070 5% 25.3 59.1 110.3 July 2014
---------------- ----------- ---------- ------- -------- ------- ------------------
IGas/Senergy,
Baxters Copse PEDL233 50% N/A 51.9 N/A July 2014
---------------- ----------- ---------- ------- -------- ------- ------------------
Horse Hill PEDL137/ Xodus, May
U Portland 246 20.163% 14.3 21.0 30.4 2015
---------------- ----------- ---------- ------- -------- ------- ------------------
Horse Hill PEDL137/ Nutech, June
Tight Oil 246 20.163% 3,131 9,245 17,519 2015
---------------- ----------- ---------- ------- -------- ------- ------------------
Horse Hill PEDL137/ Schlumberger,
Tight Oil 246 20.163% N/A 10,993 N/A August 2015
---------------- ----------- ---------- ------- -------- ------- ------------------
Angus/RPS,
Lidsey PL241 4.2% 7.5 9.5 11.9 March 2014
---------------- ----------- ---------- ------- -------- ------- ------------------
Angus/RPS,
Brockham PL234 3.6% 1.9 3.6 5.8 March 2014
---------------- ----------- ---------- ------- -------- ------- ------------------
Notes:
1. M Prospect
GIIP figure.
MANAGEMENT APPOINTMENTS
UKOG announced the appointment of Stephen Sanderson as its CEO on 27 January 2015 and as Executive Chairman on 8 July 2015. Matt Cartwright was appointed as the Company’s COO on 18 September 2015. Kiran Morzaria was appointed as the Company’s Finance Director subsequent to the period end on the 23 October 2015
RESULTS FOR THE PERIOD
(MORE TO FOLLOW) Dow Jones Newswires
February 26, 2016 02:01 ET (07:01 GMT)
Loss on ordinary activities of the Group after taxation amounted to GBP1,695,000 (2014: Loss GBP907,000). The increase in losses are mainly attributable to uncapitalised consultant, legal and due diligence costs associated with the acquisition and development of the Group’s investments and assets, particularly within its core Weald Basin Portland and Kimmeridge tight oil licences and the new Isle of Wight portfolio.
Net cash out flow from operating activities was GBP1,058,000 (2014: GBP1,207,000). The Group invested GBP3,657,000 (2014: 1,570,000). The majority of these investments were associated with expenditures on exploration and evaluation of assets and acquisitions of subsidiaries.
The Group has funded these investments, acquisitions and operating costs via financing activities which raised GBP8,323,000 during the period (2014: GBP3,759,000). The large majority of this funding has been sourced through the issue of new ordinary shares.
At the end of the period the Group had GBP4,590,000 (GBP982,000) in cash and cash equivalents. Along with its non-current and other current assets the consolidated total assets were GBP11,581,000 (2014: GBP4,148,000). Total liabilities increased to GBP799,000 (2014: 496,000). This increase in liabilities is attributable to the provisions made by the Group in relation to its share of the decommissioning liabilities in respect of the currently producing Horndean and Avington fields plus the drilling sites at Markwell’s Wood and Havant.
OUTLOOK
The Board recognises that this is an exciting period for the Company as it continues to maximise value from its existing investments. The board will seek to further capitalise upon its vanguard position in the new and exciting Weald Basin plays recently proven by the first HH-1 flow test. The Board believes that current low oil prices combined with the Company’s technical and financial strength provide an ideal opportunity to significantly expand the Company’s acreage position. We shall evaluate and seek additional investments as opportunities arise.
The Board would like to take this opportunity to thank our shareholders for their continued support and I look forward to reporting further progress over the next period and beyond.
Stephen Sanderson
Executive Chairman & Chief Executive Officer
