UKOG.L

UK Oil & Gas Investments Plc
UK Oil & Gas PLC - Significant Horndean Reserves Increase
15th April 2025, 06:00
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RNS Number : 9899E
UK Oil & Gas PLC
15 April 2025
 

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018. Upon publication of this announcement, this information is now considered to be in the public domain.

 

UK Oil & Gas PLC

("UKOG" or the "Company")

 

Significant Horndean Reserves Increase

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that, further to the Company's RNS of 10 February 2025, a new Reserves Report ("Report"), carried out for the Horndean field operator (Star Energy Group plc), has assessed that the field's remaining reserves have increased by up to 62% compared to the same period one year ago. UKOG's wholly owned subsidiary UKOG GB holds a 10% non-operated interest in Horndean.

The Report's assessed gross reserves as of 31st December 2024 and the reserve increase versus 31st December 2023, are summarised below:

·    A 62% increase in proven (1P) reserves to 1.5 million barrels ("mmbbl", UKOG net 0.150 mmbbl)

·    A 55% increase in proven plus probable (2P) reserves to 1.65 mmbbl (UKOG net 0.165 mmbbl)

·    A 53% increase in proven plus probable plus possible (3P) reserves to 1.82 mmbbl (UKOG net 0.182 mmbbl)

·    The assessed 2P reserve increase equates to 12 times the 2024 field production of 49,402 bbl.

The increase in reserves is a direct result of increased field performance via the combination of recent well workovers and the prior installation of new electric pumps in mid-2023 (see RNS of 28th June 2024).

The Report was prepared in accordance with the Petroleum Resources Management System approved by the Society of Petroleum Engineers.

Horndean reserves and contingent resources as of 31st December 2024 are summarised in tables 1 and 2 below:

Table 1: Horndean Reserves as of 31/12/2024

Horndean

Full Field (100%)*

UKOG Net (10%)

PRMS Reserves Category

1P

2P

3P

1P

2P

3P

Recoverable oil (mmbbl)

1.50

1.65

1.82

0.15

0.17

0.18

 

Table 2: Horndean Contingent Resources as of 31/12/2024

 

Horndean

Full Field (100%)*

UKOG Net (10%)

PRMS Contingent Resource Category

1C

2C

3C

1C

2C

3C

Recoverable oil (mmbbl)

0.18

0.74

1.23

0.02

0.07

0.12

Note:* As assessed for the operator Star Energy by DeGolyer & MacNaughton

Stephen Sanderson UKOG's Chief Executive commented:

"We are delighted that the Horndean field's materially increased performance has now been fully reflected in an equally material increase in assessed reserves. The resultant increased asset value, even at current Brent prices, is most welcome."

Qualified Person's Statement

Matt Cartwright, UKOG's Commercial Director, who has 40 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.

For further information, please contact:

UK Oil & Gas Plc

Stephen Sanderson / Kris Bone                                                                                        Tel: 01483 941493

 

Zeus (Nominated Adviser and Broker)                                                  

James Joyce / James Bavister / Andrew de Andrade                                                    Tel: 0203 829 5000

 

CMC Markets (Joint Broker)

Douglas Crippen                                                                                                                           Tel:  0203 003 8632              

 

Communications

Brian Alexander                                                                                                                   Tel: 01483 941493  

 

Glossary

1C

the low case estimate of Contingent Resources. There is estimated to be a 90% probability that the quantities actually recovered could equal or exceed this estimate, i.e., P90 case

2C

the mid-case or average estimate of Contingent Resources. There is estimated to be a 50% probability that the quantities actually recovered could equal or exceed this estimate, i.e., P50 case

3C

the high case estimate of Contingent Resources. There is estimated to be a 10% probability that the quantities actually recovered could equal or exceed this estimate, i.e., P10 case

 

1P

The low case or proven estimate of Reserves. There is estimated to be a 90% probability that the quantities actually recovered could equal or exceed this estimate, i.e., P90 case

 

2P

The mid-case or proven plus probable estimate of Reserves. There is estimated to be a 50% probability that the quantities actually recovered could equal or exceed this estimate, i.e., P50 case

 

3P

The high case or proven plus probable plus possible estimate of Reserves. There is estimated to be a 10% probability that the quantities actually recovered could equal or exceed this estimate, i.e., P10 case

 

bbl

Barrel of oil

Contingent Resources

those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies. Contingent Resources are further categorised in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterised by their economic status

 

Reserves Report

A Petroleum Resources report prepared by an independent person(s), providing an estimated range of remaining recoverable resources and their potential monetary valuation in accordance with the relevant reporting standard (in this case the 2018 Society of Petroleum Engineers' PRMS). This Report has not been prepared under the AIM rules for oil & gas companies.

 

Reserves

Those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions. Reserves must satisfy four criteria: discovered, recoverable, commercial and remaining (as of the evaluation's effective date) based on the development project(s) applied. Reserves are further categorised in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterised by development and production status.

 

mmbbl

Million barrels of oil

 

 

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