Rocketing this morning on a superb upgrade !...

Eccentric UK Oil Leader Abruptly Calls It Quits Amid "Gatwick Gusher" Frenzy
One of the UK O&G industry's most Type A and eccentric leaders is resigning. David Lenigas has abruptly stepped down from his position as executive chairman of UK Oil & Gas Investments (UKOG). That's the company that recently made claims that there were up to 100 billion barrels of oil under the ground near Gatwick airport in southern England.

Besides the formal announcement of his departure, no reason was given for the abruptness of his exit. The company said Lenigas would "focus on other business interests."

He will remain a consultant for UKOG but will be replaced as chairman by the company's CEO, Steve Sanderson, who will assume both roles.

no doubt the market will deliver its verdict

UK Oil & Gas Investments PLC (London AIM and ISDX: UKOG) announces that Horse Hill Developments Limited has informed the Company that light, 40-degree API, sweet oil has flowed naturally to surface from an 80-foot zone within the Lower Kimmeridge limestone interval at a depth of approximately 900 metres below ground level.

Flow commenced at around 10.00am GMT yesterday at an initial instantaneous rate in excess of 700 barrels per day using a 1-inch choke, in an approximate mix of 50:50 oil to water. The well was then choked back to 32/64 inches resulting in a steady early oil rate in excess of 463 barrels of oil per day over a further 7.3-hour period, in an approximate mix of over 99% oil and less than 1% water.

The Lower Kimmeridge flow period is planned to continue today at 0700 following an overnight shut-in from 1900 Monday. Upon completion, Phase 2 and Phase 3 operations will move to the shallower Upper Kimmeridge limestone and Portland sandstone zones at approximately 840 and 615 metres below ground level, respectively.

The HH-1 discovery well, the original exploration drilling phase originally completed at the end of 2014, is located within onshore exploration Licence PEDL137, on the northern side of the Weald Basin near Gatwick Airport. UKOG owns a 20.163% interest in PEDL137.

Stephen Sanderson, UKOG's Executive Chairman commented:

"This is a very significant event for the company and for oil and gas activity in the Weald basin of southern England. Importantly, tests so far show oil has flowed to the surface under its own pressure and has not, so far, required artificial lift.

The flow test, the first ever in the Lower Kimmeridge limestone within the Weald basin, provides proof that significant quantities of moveable oil exist within the Kimmeridge section of the well and can be brought to surface at excellent flow rates. In this case from a vertical well with minimal stimulation.

While these flow rates are significant and in excess of management's expectations, it should be borne in mind that the planned future use of a horizontal well and appropriate conventional reservoir stimulation techniques could likely increase flow rates even further.

We look forward to more news from the final test results from the Lower Kimmeridge limestone and the shallower tests. The Company will be starting the regulatory permit process forthwith, so we can return to the well to seek to demonstrate sustainable commercial production."

UKOG's interest in Horse Hill

The HH-1 well is located within onshore exploration Licence PEDL137, on the northern side of the Weald Basin near Gatwick Airport. UKOG owns a 30% direct interest in HHDL and a 1.02% interest in HHDL via its 6% interest in Angus Energy Limited. HHDL is a special purpose company that owns a 65% participating interest and operatorship of Licence PEDL137 and the adjacent Licence PEDL246 in the UK Weald Basin.

Qualified Person's Statement:

Stephen Sanderson, UKOG's Executive Chairman, who has over 35 years of relevant experience in the oil industry, has approved the information contained in this announcement. Mr Sanderson is a Fellow of the Geological Society of London and is an active member of the American Association of Petroleum Geologists.

sounds good

anything that has the slightest whiff of lenigas should be avoided like the plague

I think this is a bit safer now that Lenigas has gone but Mr Sanderson has been known to tell the odd porky, though I suspect he might have been heavily influenced by Lenigas, which perhaps proves that he may not be the man for the job! However something useful is bubbling out of the ground though how much longer oil is going to be as useful as it was remains to be seen; it will probably last as long as this well though!

No doubt someone will claim that the oil is leaking from a Gatwick airport fuel tank! Think this has helped to derisk it !

for goodness sake!
if you want oilies in your portfolio, there are a zillion better bets

DOR?

I used to hold BP and Shell but only trade oilies now and UKOG, 88E and the likes are very good for that if you are quick! :o)

even better not to hold

HNL?

Becoming interesting again : it seems they have really discovered a serious amount of oil with 900 barrels per day flow rates !....the sp needs crude to rise....

buy at your peril!
900 bpd is a joke amount too

It's not Saudi, but the best on mainland UK since Wytch discovered in the 70's (Poole oil)....I have a few....but must monitor crude....

this reeks of david lenigas, and any company with which he has or had links should be avoided like the plague (imvho!!)

https://www.ig.com/uk/ceo-videos?bctid=4764220449001&bclid=3815341918001

Worth a watch if you haven't already seen it rf.

Will take a look when I have a moment HC...cheers.....it could be that oil is bouncing back to $40 a barrel....it's possible ...there's nothing like uncertainty (American elections/UK in Europe etc...) to push WTI and Brent up !...which would push the sp up here...

if you're relying on the price of crude to revive this dog - and yes, there's plenty of others - then surely you'ld be better off in putting your money in a quality oily (RDSA if you want an example)

Horse Hill-1 Oil Discovery, Weald Basin, UK

Aggregate Flow Rate Likely the Highest of any UK Onshore New Field Discovery Well
UK Oil & Gas Investments PLC (London AIM and ISDX: UKOG) announces that Horse Hill Developments Ltd has informed the Company that the final Horse Hill 1 ('HH-1') Portland test flowed at a stable dry oil rate of 323 barrels of oil per day ('bopd'), double the previously reported rate. The final total aggregate stable dry oil flow rate from two Kimmeridge limestones plus the overlying Portland sandstone stands at 1688 bopd. Over the 30-90 hour flow periods from each of the 3 zones, no clear indication of any reservoir pressure depletion was observed. Further analysis of data is ongoing and will be reported shortly.

Way Forward
Given these exceptional results, the Company has commissioned Nutech to investigate a possible upgrade to the oil in place ("OIP") calculated within all 3 test zones together with engineering studies to examine possible flow rates from a horizontal well. Reservoir engineering analyses by Nutech and Xodus are also underway, and will likely result in an estimation of potential recoverable volumes. Results of these studies will be reported shortly.

Preparation is now underway to obtain regulatory permissions to conduct extended production tests from all 3 zones at the site, followed by a horizontal sidetrack in the Kimmeridge and a possible new Portland development well.

Flow Test Highlights
· The final Portland test of 323 bopd, over an 8.5-hour, period is the highest stable dry oil flow rate from any onshore UK Portland well. On further testing, with a larger pump, the rate doubled from the previously reported stable dry oil rate of 168 bopd. The Portland was produced at maximum pump capacity and showed no clear indication of depletion. It is likely that the rate can be further increased using a higher capacity downhole pump during the next planned test.

· Proof that the Kimmeridge limestones contain significant volumes of moveable light oil that can be flowed to surface at commercial rates

· As previously reported, the stable, natural dry-oil flow rate of 464 bopd from the Lower Kimmeridge Limestone is the first ever flow from this rock unit in the Weald Basin and onshore UK

· Based on the analysis of published reports from all significant UK onshore discovery wells, the Company concludes that the well's 1688 bopd is likely the highest aggregate stable dry-oil flow from any onshore UK new field wildcat discovery well

· Based on the analysis of published reports from all significant UK onshore discovery wells, the Company concludes that the 901 bopd from the Upper Kimmeridge zone is likely the highest stable natural dry oil flow rate from a single reservoir in any UK onshore new field wildcat discovery well

· High quality Brent Crude produced: light, sweet oil (40 degrees API in Kimmeridge, 35-37 degrees API in Portland) 1,940 barrels delivered to the Esso Fawley refinery

· Preliminary analysis confirms that the Lower and Upper Kimmeridge Limestone units are naturally fractured reservoirs with high deliverability

· Strong possibility for further optimisation and increased flow rates from all 3 zones in future development and production wells, particularly through the use of horizontal wells.