Regulatory Story
Company UK Oil & Gas PLC
Headline Rig Arrival at Horse Hill
Released 07:00 24-Sep-2019
Number 3708N

RNS Number : 3708N
UK Oil & Gas PLC
24 September 2019

UK Oil & Gas PLC

("UKOG" or the "Company")


Rig Arrival at Horse Hill: HH-2 Operations Commence


UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that operations for the new Horse Hill-2/2z ("HH-2/2z") Portland horizontal well, in which the Company has an 85.635% controlling interest, have commenced. The start of physical drilling operations or "spud" is expected shortly following completion of the rig-up process and will be reported in due course.


Drilling will commence with the HH-2 vertical pilot programme and will be followed directly by the horizontal well section, HH-2z, with a planned trajectory of around 1000m wholly within the Portland reservoir. Drilling operations are expected to be completed in approximately 60 days. The HH-2z horizontal will then be tested using a bespoke downhole electric pump, or ESP.


Immediately prior to rig arrival, test production from the HH-1 Kimmeridge oil pool was temporarily shut-in to permit a safe rig-up process and will be resumed prior to the pilot hole spud. Kimmeridge test production is planned to continue throughout the drilling campaign.


Before the current shut-in, Kimmeridge test production totalled 39,205 barrels ("bbl") of dry Brent quality crude, with average daily rates of up to 307 bbl of oil per day recorded following the resumption of production on 12 September 2019. Total aggregate Portland and Kimmeridge test production now stands at over 68,773 bbl.


Following UKOG's recent acquisition of Tellurian's 35% interest in Horse Hill, the Company now holds a controlling 85.635% interest in the field and surrounding highly prospective PEDL137 and PEDL246 licences, which continue to be operated by UKOG's subsidiary company, Horse Hill Developments Ltd, in which UKOG holds a 77.9% direct controlling interest.


Stephen Sanderson, UKOG's Chief Executive, commented:


"The journey to long-term oil production at Horse Hill has now begun. We look forward to a safe and successful drilling campaign at our flagship asset."


Qualified Person's Statement


Matt Cartwright, UKOG's Commercial Director, who has over 35 years of relevant experience in the global oil industry, has approved the information contained in this announcement. Mr Cartwright is a Chartered Engineer and member of the Society of Petroleum Engineers.


For further information, please contact:


UK Oil & Gas PLC

Stephen Sanderson / Kiran Morzaria                                                      Tel: 01483 900582


WH Ireland Ltd (Nominated Adviser and Broker)

James Joyce / James Sinclair-Ford                                                           Tel: 020 7220 1666


Cenkos Securities PLC (Joint Broker)

Joe Nally / Neil McDonald                                                                         Tel: 0207 397 8919


Novum Securities (Joint Broker)                                                                                                              

John Bellis                                                                                                     Tel: 020 7399 9400


Public Relations

Brian Alexander                                                                                            Tel: 01483 900582





horizontal well

a well that during drilling is steered so as to follow and remain within a particular geological stratum or reservoir unit having a trajectory that runs  approximately parallel to the top and or base of the target horizon

oil field

an accumulation, pool or group of pools of oil in the subsurface that produces oil to surface

well test

or flow test involves testing a well by flowing hydrocarbons to surface, typically through a test separator; key measured parameters are oil and gas flow rates, downhole pressure and surface pressure. The overall objective is to identify the well's capacity to produce hydrocarbons at a commercial flow rate.


UKOG Licence Interests


The Company has interests in the following UK licences:




UKOG Interest

Licence Holder


Area (km2)


Avington 1



UKOG (GB) Limited

IGas Energy Plc


Field currently temporarily shut in

Broadford Bridge/Loxley/Godley Bridge 2, 3, 8



UKOG (234) Ltd 4

UKOG (234) Ltd 4


BB-1/1z oil discovery, Loxley-1 gas appraisal well planning application submitted

A24 3






Finalising new site selection to drill Portland and Kimmeridge prospects

Horndean 1



UKOG (GB) Limited

IGas Energy Plc


Field in stable production

Horse Hill 5



Horse Hill Developments Ltd 

Horse Hill Developments Ltd 


Production tests ongoing, drilling rig mobilised

Horse Hill 5



Horse Hill Developments Ltd 

Horse Hill Developments Ltd 


As above

Isle of Wight (Onshore) 2, 3






Preparing planning submission for Arreton-3 oil appraisal well and Arreton South exploration well

Markwells Wood



UKOG (GB) Limited

UKOG (GB) Limited


MW-1 P&A




1.  Oil field currently in stable production.

2.  Oil discovery pending development and/or appraisal drilling.

3.  Exploration asset with drillable prospects and leads.

4.  Contains the Broadford Bridge-1/1z Kimmeridge oil discovery, the eastern extension of the Godley Bridge Portland gas discovery, plus further undrilled Kimmeridge exploration prospects.

5.  Oil field with three productive and commercially viable zones, EWT ongoing, further drilling campaign scheduled, production planning consent granted in September 2019, development underway.

6.  UKOG has a direct 77.9% interest in HHDL, which has a 65% interest in PEDL137 and PEDL246.

7.  OGA consent received for the transfer of operatorship from Europa to UKOG

8.  Gas discovery pending appraisal drilling and development with underlying Kimmeridge potential


The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014

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