UKOG gets more interest in off Isle of Wight licence

The Board of UK Oil & Gas Investments PLC (UKOG) has announced it is acquiring further interests in licence P1916, offshore of the Isle of Wight, and onshore licence PEDL126. 

UKOG is the operator of these two licences. These acquisitions take UKOG’s operated interest in P1916 from 65% to 72.5% and in PEDL126 from 50% to 60%.

In P1916, which is located immediately offshore of the Isle of Wight, UKOG has previously indicated that it is investigating the possibility that early oil-mature Kimmeridge Clay hot shales might have directly charged interbedded Kimmeridge limestones, analogous to the Kimmeridge Bay and Balcombe fields, and as interpreted from the preliminary results of the recent Horse Hill-1 well in which UKOG has an interest.

UKOG says it is also investigating the possibility that the Kimmeridge Clay hot shales may also have charged the Portland Limestone lying at the base of the Kimmeridge Clay Formation within the identified M prospect in a situation analogous to the nearby Arreton-2 Portland oil discovery, drilled and tested by British Gas in 1974.

UKOG has applied (with Solo Oil plc and Angus Energy Limited) for the onshore acreage adjacent to P1916 in the UK 14th Landward Licencing Round. This onshore acreage includes the landward extension of the M prospect, the undeveloped Arreton Portland oil discovery, four further leads with stacked Jurassic and Triassic objectives and one lead with Jurassic limestone objectives.

UKOG has agreed, subject to normal regulatory and partner company approvals, to acquire from Egdon (E&P) Limited, for a nominal consideration of £10,000, its 7.5% interest in P1916 as well as the 10% interest of Egdon Resources U.K. Limited in UK onshore licence PEDL126 in the Weald Basin, which contains the Markwells Wood-1 Great Oolite oil discovery.

David Lenigas, the company’s Chairman, commented:

“UKOG is optimistic about the potential of the offshore Isle of Wight licence, which contains the large drill ready M Prospect, and also about the Markwells Wood-1 oil discovery, which lies immediately adjacent to and within the mapped oil water contact of the producing Horndean oil field in which UKOG has a participating interest.”

Commenting on these disposals, Mark Abbott, Managing Director of Egdon Resources said:

“We are pleased to have completed the disposal of these two minority interest, non-core assets in line with our stated strategy of concentrating our resources on fewer, higher impact projects.”

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