TIDMUKOG
RNS Number : 6570I
UK Oil & Gas PLC
20 April 2022
UK Oil & Gas PLC
("UKOG" or the "Company")
Turkey: Basur-Resan seismic processing completed
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce
that seismic processing of the 55 km of new Basur-Resan 2D seismic
has been completed and has been received from Abu Dhabi based BGP.
Following an initial review, the Company believes the new data is
an improvement on the prior 1982-92 seismic data, further
confirming the prospectivity of the Basur-Resan hydrocarbon
accumulation. As originally planned, the new data will help
facilitate the correct placement and design of the future Basur-3
sidetrack ("B-3S") and Resan-6 ("R-6") appraisal wells.
The new seismic was pre-stack depth migrated ("PSDM"), a
significant technical step forwards from the original seismic data
used to locate the Company's 2021 Basur-3 ("B-3") appraisal well.
PSDM is a key modern process which correctly images and positions
faults and geological structures in the depth domain along the
plane of the 2D seismic line.
Implications for Basur-Resan hydrocarbon pool
New seismic line AME-21-8, the first seismic line running
northwest to southeast along the 'strike' or geological axis of the
Basur-Resan anticline and passing through key Basur and Resan
wells, indicates, in the Company's view, that both Basur and Resan
are part of the same 60 km(2) anticline and could thus potentially
contain one common hydrocarbon pool. Both the B-1 discovery and
Resan-5 wells which fall on the new seismic line, some 9 km apart,
are reported to have recovered oil to surface from similar depths
within the Garzan to Mardin target section, albeit historic
1950s-60s data quality and documentation is poor. The proposed B-3S
and R-6 wells will test whether this interpretation is correct.
Implications for B-3 well
UKOG's preliminary interpretation of new line AME-21-3, which
runs northeast-southwest directly over the original Basur-1 ("B-1")
discovery well and the B-3/B-3S well trajectories, reveals that the
Company's B-3 well, designed to test an area interpreted to be
updip of the B-1 discovery on the upthrown side of a bounding
fault, actually penetrated the deeper, downthrown area to the north
of the bounding fault. PSDM demonstrates the bounding fault to lie
around 0.6 km further southwest of the position seen on the
original pre-drill 1982-92 seismic data. The integrity of the updip
B-1 pool however remains intact, albeit with a minor reduction in
overall gross rock volume due to the more southerly position of the
bounding fault.
The new PSDM thus explains why B-3 did not reach the objective
Garzan to Mardin sections, as these are now shown to lie below the
base of the well, deeper than originally prognosed utilising the
old 1982-92 seismic and lying below the lowest known hydrocarbons
in B-1. As previously reported on 31(st) July 2021, deteriorating
hole conditions following fishing operations for a stuck downhole
assembly prevented further B-3 operations. Consequently, as no
electric logs were obtained, B-3's precise geological position
within the Lower Germav formation overlying the Garzan remains
uncertain.
The Company's position at the time was to drill a mechanical
sidetrack, B-3S, to intersect the Top Garzan as close to the B-1
discovery location as soon as possible; however, a time out was
requested by the operator to complete seismic acquisition and
processing before any drilling resumption.
Implications for future B-3S well
With the new seismic giving a more precise location of the
bounding fault north of B-1, it is now apparent that to
successfully enter the upthrown side of the fault containing the
B-1 oil discovery, B-3S will require a steeper angle and longer
lateral deviation than previously envisaged. In this respect and to
reduce B-3S drilling uncertainty, the current technical plan is to
drill B-3S to intersect the known subsurface positions of the
target objectives at or immediately adjacent to those penetrated by
the B-1 discovery, proven to lie within the Basur hydrocarbon
pool's upthrown fault-block. This was originally UKOG's preferred
position prior to the B-3 well.
Next steps
Geological mapping utilising the new PSDM data is well advanced
and revised drilling prognoses are in preparation. These will be
used to fine tune operational planning for B-3S and for a simple
vertical R-6 well, designed to test the culmination of the
Basur-Resan anticline (i.e., where the objective section is closest
to the surface). A rig contractor has been identified. Given the
new seismic indicates B-3S requires a longer and higher angle
trajectory than previously envisaged, the joint venture is
considering the merits and potential cost savings of drilling the
simpler R-6 before the more complex B-3S. The Company awaits the
operator's drilling cost comparisons, expected timings and final
recommendations in this respect before confirming its position.
The Basur-Resan anticline containing the Basur-1 oil discovery
is located within the surrounding 305 km(2) Resan M47-b1, b2
licence, in which UKOG's wholly owned subsidiary, UKOG Turkey Ltd,
holds a 50% non-operated interest.
Stephen Sanderson, UKOG's Chief Executive commented:
"The new seismic is an improvement on the prior 1982-92 data and
for the first time links the original Basur-1 discovery with the
Resan wells at the southeastern culmination of the anticline,
providing encouragement that a single hydrocarbon accumulation
could be present over the entire 60 km(2) Basur-Resan anticline. As
originally envisaged, the new data will also help facilitate the
correct placement and design of the future planned B-3S and R-6
appraisal wells, designed to determine the future commercial
viability of Basur-Resan."
Qualified Person's Statement:
Matt Cartwright, UKOG's Commercial Director, who has 39 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.
Glossary
anticline a domed shape geological structure, often elongate
and asymmetrical as is the case at Basur-Resan.
Often the anticline's geological expression can
be seen at surface where it is expressed as a
surface anticline. This is the case at Basur-Resan.
discovery a petroleum accumulation for which one or several
exploratory wells have established through testing,
sampling and/or logging the existence of a significant
quantity of potentially moveable hydrocarbons.
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hydrocarbon pool a subsurface hydrocarbon accumulation existing
within a single geological reservoir unit.
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pre-stack depth an advanced step in m odern seismic processing
migration (PSDM) which requires extensive computer CPU power to
transform seismic data recorded in the time domain
into a depth domain data set. PSDM considers the
vertical and lateral seismic velocity variations
present in the subsurface to correctly position
reflections from geological horizons, faults and
structures in space. In the case of 2D seismic,
the PSDM's positioning of seismic events is confined
to the 2D depth domain space along the vertical
plane of the seismic line.
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sidetrack a secondary wellbore drilled away from the original
hole. The sidetrack utilises the existing well's
casing down to the point where the sidetrack must
commence in order to reach the target.
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For further information, please contact:
UK Oil & Gas PLC
Stephen Sanderson / Matt Gormley / Allen Tel: 01483 941493
D Howard
WH Ireland Ltd (Nominated Adviser and
Broker)
James Joyce / Andrew de Andrade Tel: 020 7220 1666
Communications
Brian Alexander Tel: 01483 941493
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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