UK Oil
& Gas PLC
("UKOG"
or the "Company")
D&M
Horndean Field Resource Report
UK Oil & Gas PLC (London AIM:
UKOG) is pleased to announce that a new
Competent Person's Report ("CPR") has been completed on the
Horndean field (UKOG 10% non-operated interest) by Dallas, Texas
based DeGolyer & MacNaughton, a globally recognised oil &
gas reserve estimation and valuations consultancy. The CPR's
findings are summarised in Tables 1 and 2 below.
Highlights:
· 22% increase in
average field daily production in 2023 vs 2022
· Increased net UKOG
2P reserves + 2C contingent resources of 186,200 barrels aggregate
vs 179,300 barrels in 2022
· Increased 2023
UKOG net share of oil sales revenues of £297,000 vs £287,000 in
2022
· Increased 2023
UKOG net earnings of £147,000 after costs vs £136,000 in
2022
Table 1: Horndean CPR
Reserves
|
Case: D&M forward oil
price
|
Full Field
(100%)
|
UKOG Net
(10%)
|
|
PRMS
Reserves
|
1P
|
2P
|
3P
|
1P
|
2P
|
3P
|
|
Recoverable oil (million barrels)
|
0.93
|
1.06
|
1.19
|
0.09
|
0.11
|
0.12
|
Table 2: Horndean CPR Contingent
Resources
|
Case: D&M forward oil
price
|
Full Field
(100%)
|
UKOG Net
(10%)
|
|
PRMS
Reserves
|
1C
|
2C
|
3C
|
1C
|
2C
|
3C
|
|
Recoverable oil (million barrels)
|
0.35
|
0.80
|
1.30
|
0.03
|
0.08
|
0.13
|
As of 31 December 2023, D&M
assess that UKOG's share of Horndean's aggregated mid case 2P
Reserves and 2C Contingent Resources have now increased to 186,200
barrels UKOG net from 179,300 barrels in 2022. The aggregate sum
comprises 106,400 barrels 2P Reserves and 79,800 barrels 2C
recoverable Contingent Resources.
In 2023, UKOG's net share of
Horndean production revenues was £297,000, with net earnings after
costs of £147,000. Total gross field production in 2023 averaged
123 barrels of oil per day, a 22% increase from 101 barrels of oil
per day in 2022.
Installation of new electric surface
pumps was completed in 2022 and which resulted in increased
production rates, lower electrical power consumption and a
corresponding increase in 2023 field earnings, despite a number of
workovers and rod replacements being required throughout the past
year.
The CPR was prepared in accordance
with the requirements and standards of the Petroleum Resources
Management System ("PRMS") of the Society of Petroleum
Engineers. This CPR has not been prepared
under the AIM rules for oil & gas companies.
Stephen Sanderson UKOG's Chief Executive
commented:
"The growth in Horndean reserves,
daily rate, earnings and profit are both encouraging and welcome
news for the Company. Horndean remains a mature field that shows
remarkably low production decline."
Qualified Person's Statement
Matt Cartwright, UKOG's Commercial
Director, who has 40 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 / Guzyal
Mukhametzhanova
Tel: 01483 941493
WH
Ireland Ltd (Nominated Adviser and
Broker)
James Joyce / James Bavister /
Andrew de Andrade
Tel: 020 7220 1666
Communications
Brian Alexander
Tel: 01483 941493
Glossary
|
1C
|
the low case estimate of Contingent
Resources. There is estimated to be a 90% probability that the
quantities actually recovered could equal or exceed this estimate,
i.e., P90 case
|
|
2C
|
the mid-case or average estimate of
Contingent Resources. There is estimated to be a 50% probability
that the quantities actually recovered could equal or exceed this
estimate, i.e., P50 case
|
|
3C
|
the high case estimate of Contingent
Resources. There is estimated to be a 10% probability that the
quantities actually recovered could equal or exceed this estimate,
i.e., P10 case
|
|
1P
|
the low case or proven estimate of
Reserves. There is estimated to be a 90% probability that the
quantities actually recovered could equal or exceed this estimate,
i.e., P90 case
|
|
2P
|
the mid-case or proven plus probable
estimate of Reserves. There is estimated to be a 50% probability
that the quantities actually recovered could equal or exceed this
estimate, i.e., P50 case
|
|
3P
|
the high case or proven plus
probable plus possible estimate of Reserves. There is estimated to
be a 10% probability that the quantities actually recovered could
equal or exceed this estimate, i.e., P10 case
|
|
Contingent Resources
|
those quantities of petroleum
estimated, as of a given date, to be potentially recoverable from
known accumulations, but the applied project(s) are not yet
considered mature enough for commercial development due to one or
more contingencies. Contingent Resources are further categorised in
accordance with the level of certainty associated with the
estimates and may be sub-classified based on project maturity
and/or characterised by their economic status
|
|
CPR
|
Competent Person's Report, a
Petroleum Resources report prepared by an independent Competent
Person(s), providing an estimated range of remaining recoverable
resources and their potential monetary valuation in accordance with
the relevant reporting standard (in this case the 2018 Society of
Petroleum Engineers' PRMS). This CPR has not been prepared under
the AIM rules for oil & gas companies.
|
|
Reserves
|
those quantities of petroleum
anticipated to be commercially recoverable by application of
development projects to known accumulations from a given date
forward under defined conditions. Reserves must satisfy four
criteria: discovered, recoverable, commercial and remaining (as of
the evaluation's effective date) based on the development
project(s) applied. Reserves are further categorised in accordance
with the level of certainty associated with the estimates and may
be sub-classified based on project maturity and/or characterised by
development and production status.
|
The
information contained within this announcement is deemed by the
Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014, as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018. Upon
publication of this announcement, this information is now
considered to be in the public domain.