UK Oil & Gas PLC Turkey: Operational Update & New Pinarova-1 well (3123M)
11 Gennaio 2023 - 8:00AM
UK Regulatory
TIDMUKOG
RNS Number : 3123M
UK Oil & Gas PLC
11 January 2023
UK Oil & Gas PLC
("UKOG" or the "Company")
Turkey: Operational Update & New Pinarova-1 well
Further to the analysis of the Q3 2022 Phase 2 Seismic Programme
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that
the Resan JV (UKOG 50% working interest) has identified and plans
to drill in Q1 2023, a new potential shallow oil accumulation,
Pinarova, of some 9 km(2) areal extent, located 6 km north of the
Basur-1 oil discovery. The new Pinarova-1 well is designed to test
a working hypothesis, supported by well and seismic data, that the
active (41.7˚API) light oil seep found last summer in a seismic
shot hole (see RNS of 30 June 2022) above the Pinarova structure,
is directly fed by and connected to an underlying light oil
accumulation within Eocene Hoya group limestones, 300-645m below
surface.
The presence of movable oil within Pinarova is indicated by
results of the 2018 Kezer-1 shallow geothermal well, located near
the apex of the Pinarova geological feature. Kezer-1 reported
strong oil shows throughout the Hoya and flowed heavily oil-cut
fluids to surface on a short open-hole geothermal test. Kezer-1 was
deemed unsuitable for geothermal purposes and abandoned. Both new
and legacy seismic data also show a series of vertically stacked
seismic amplitude anomalies within the core of Pinarova's Hoya
structure, possibly directly indicating hydrocarbons and/or the
development of good reservoir within the Hoya.
The Company and its joint partner Aladdin Middle East ("AME")
consider Pinarova to offer similar potential success case outcomes
to a Basur-4 appraisal well, but at a much lower drilling cost (c.
$0.66 million gross versus c. $4.12 million gross) and with a
shorter time to execution and delivery.
Pinarova-1 will, therefore, be designed to test if light oil is
present in commercially viable saturations and quantities within
the Hoya and, if successful, will be completed as a pumped oil
production well. If successful, Pinarova-1 would likely be followed
by a Pinarova-2 well and/or a Basur-4 appraisal well drilled from a
new site west of Basur-1 (see below).
Basur oil discovery update
Analysis of the new Phase 2 seismic data also supports the
directors' belief that the Basur structure extends more westwards
than first mapped and can now be better appraised from a newly
identified site, 1 km west of the Basur-1 oil discovery. The new
site will enable the core of the Basur discovery to be reached and
appraised with reduced horizontal deviation than from the Basur-3
site, and without the need to drill through the major NW-SE thrust
fault zone immediately to the south. The new location thus removes
the potential lost circulation, stuck pipe and significant cost
overrun risks associated with drilling through the heavily
fractured limestones within the thrust-fault zone. The new site
will, however, require a new pad and longer access track to be
constructed.
Stephen Sanderson, Chief Executive, commented:
"Pinarova's prospectivity, potential success case volumes and
modest drilling costs make it an attractive short-fuse project
worth pursuing. We are actively supporting our operator AME to get
Pinarova-1 drilled as soon as practicable in 2023 and, if
successful, either Pinarova-2 and/or a Basur-4 appraisal well
drilled from a new site 1 km west of the Basur-1 discovery."
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
degAPI a measure of the density of crude oil, as defined
by the American Petroleum Institute
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
--------------------------------------------------------
geothermal a well designed to harness geothermal heat within
well the earth by transferring heat from hot formation
water at depth to surface via a borehole. The
heat transfer to surface can be via direct circulation
of formation water to surface (circulating loop)
or via means of a heat pump within the borehole
(closed loop).
--------------------------------------------------------
limestone a sedimentary rock predominantly composed of calcite
(a crystalline mineral form of calcium carbonate)
of organic, chemical or detrital origin.
--------------------------------------------------------
lost circulation occurs when drilling mud is lost into one or more
geological formation due to the presence of faults,
fractures, or highly permeable layers.
--------------------------------------------------------
oil seep a natural flow of crude oil at or close to the
earth's surface whose origin is from a petroleum
accumulation or oil source rock at depth.
--------------------------------------------------------
seismic amplitude a measure of the seismic reflection strength at
a given subsurface interface
--------------------------------------------------------
seismic amplitude a seismic amplitude that is either higher or lower
anomaly than the general amplitudes seen elsewhere at
the same geological interface
--------------------------------------------------------
shot hole a shallow borehole in which a small amount of
explosive is detonated in order to generate a
seismic signal
--------------------------------------------------------
stuck pipe a situation where the drill string becomes stuck
in the borehole requiring specialist equipment
and techniques to recover it to surface or for
a mechanical sidetrack to drill around the stuck
pipe.
--------------------------------------------------------
thrust fault a type of fault that forms in areas where the
earth's crust is under compression such as in
orogenic (mountain) belts and where the upper
block moves up and over the lower block.
--------------------------------------------------------
For further information, please contact:
UK Oil & Gas PLC
Stephen Sanderson / Allen D Howard Tel: 01483 941493
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 to
constitute inside information as stipulated under the retained EU
law version of the Market Abuse Regulation (EU) No. 596/2014 (the
"UK MAR") which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
with the Company's obligations under Article 17 of the UK MAR. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain.
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