Stephen Sanderson, LON:UKOG Executive Chairman, commented: “The conversion of the Horse Hill Licences to the new 14(th) round licence terms is particularly valuable to the Company. We can now move our stated Portland and Kimmeridge Limestone appraisal and development programme forward over Horse Hill in the certainty that we can retain 100% of the entire 55 square mile licence without the necessity of any future relinquishments.
Similarly, the Broadford Bridge PEDL234 extension now formally enables Kimmeridge Oil and Gas to drill the Broadford Bridge well and submit planning consents for a second well over the extension of the Godley Bridge Portland Gas discovery.
Additionally, the extension of Baxters Copse gives us further time to assess the economic viability of the BC-1 Oolite oil discovery and fully assess any Kimmeridge Limestone potential.
These extensions, plus the recently announced Holmwood PEDL143 extension, give us a clear 2-year window in which to deliver commerciality at Horse Hill and demonstrate the repeatability of the HH-1 discovery results over the basin.”
UK Oil & Gas Investments PLC (LSE AIM: UKOG) has told DirectorsTalk that the Oil and Gas Authority (“OGA”) has granted two licence extensions, and three licence conversions to new model terms for the following licences in which the Company has material interests:
— Horse Hill (“HH”) PEDL137 and PEDL246 (Company Interest 27.3%): At the election of the Operator, Horse Hill Developments Ltd, the licences will adopt the 2016 14th Round licence terms, permitting the HH Licences to continue without further relinquishment. A Retention Area (“RA”) covering the entire 55 square mile licence area and an outline work programme has been agreed with the OGA. The RA will continue throughout the agreed work programme period currently due to expire on June 30, 2018 for PEDL137 and June 30, 2017 for PEDL246. The HH Licences forward work plan includes long-term production testing of 3 Kimmeridge Limestone zones plus the overlying Portland, two contingent appraisal/development wells and 3D seismic.
— Broadford Bridge (“BB”) PEDL234 (Company interest 100% via ownership of Kimmeridge Oil and Gas Ltd): A two-year extension of the Initial Term of the licence to June 30(th) 2018. The Licence contains a constructed well pad and regulatory permissions to drill the BB-1 Kimmeridge Limestone well, a look-alike Kimmeridge prospect to the Horse Hill-1 Kimmeridge Limestone oil discovery. The licence also contains the mapped eastern extension of the Godley Bridge Portland gas discovery with excellent underlying Kimmeridge potential which will be tested by a new appraisal well subject to obtaining necessary regulatory consents.
— Markwells Wood PEDL126 (Company Interest 100%): The licence will now adopt the new 2016 14th Round licence terms permitting the Licence to continue without further relinquishment. The RA will continue throughout the agreed work programme period currently set to expire on June 30, 2017. The Licence’s forward work programme includes obtaining planning permission for a phased oil development and the submission of a Field Development Plan.
— Baxters Copse PEDL 233 (Company Interest 50%): A two-year extension of the Initial Term of the licence to June 30(th) 2018. The Licence contains the Baxters Copse-1 (“BC-1”) Jurassic Oolite oil discovery. The extension will permit an oolite appraisal well and possible Kimmeridge limestone test to be drilled subject to obtaining necessary regulatory consents.
