UK Oil & Gas Loss Widens, Reports Oil Accumulation Proof At BB-1z

29th Mar 2018 14:12

LONDON (Alliance News) - UK Oil & Gas Investments PLC said on Thursday its pretax loss widened in its 2017 financial year, largely due to an exceptional gain in 2016, as progress continues at Horse Hill.

Separately, the company said its wholly-owned subsidiary Kimmeridge Oil & Gas Ltd has reported further proof of existence of a "continuous" oil accumulation at Broadford Bridge-1/1z, located in southern England.

"2017 has been a transformational year for UKOG. We have continued to build a spread of investments, focused on UK onshore oil assets centred upon our exciting and industry-leading position in the Weald Basin's Kimmeridge Limestone oil play," the company said in a statement.

For the year ended September 30, revenue amounted to GBP207,000, up from GBP151,000 the year before, as its operating loss narrowed to GBP2.4 million from GBP2.9 million.

Pretax loss widened to GBP2.3 million from GBP2.0 million the year before, largely due to a GBP1.0 million exceptional benefit in 2016.

Planning permissions are in place for the full Horse Hill long-term testing and appraisal programme and Holmwood well, UK Oil & Gas said, with its investee companies forecast to be able to asses commerciality in the second quarter of 2018 and 2019 respectively.

Seperately, the company said its wholly-owned subsidiary Kimmeridge Oil & Gas said there has been further proof of existence of a "continuous" oil accumulation at Broadford Bridge-1/1z, and the existence of a regional scale Kimmeridge Limestone natural fracture network capable of delivering oil to surface without significant reservoir stimulation.

A further BB-1z sidetrack and/or alternate completion and reservoir stimulation techniques are under consideration, UK Oil & Gas said, to help deliver higher "sustainable rates and possible future commerciality".

Two further PEDL234 KL drilling sites have been finalised, both located within the thickest, most thermally mature and oil generative area of the deposit. The planned 2019 drilling campaign has been scheduled after testing and drilling programme completion at Horse Hill.

Shares in the company were up 0.2% at 1.327 pence on Thursday.

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