UKOG update September 24 2019

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The company issued an RNS today to confirm that operations for the new Horse Hill-2/2z Portland horizontal well, in which the company has an 85.635% controlling interest, have commenced. The spud of the well is expected shortly following completion of the rig-up process and will be reported shortly.

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.

Kimmeridge test production is planned to continue throughout the drilling campaign. Before the current shut-in, Kimmeridge test production totalled 39,205 barrels 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.

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."