Rocketing this morning on a superb upgrade !...

Interesting development on the side track.

For me, the most interesting part of today's excellent full RNS announcement was the following paragraph:

"Additionally, BB-1z delivers a unique opportunity to map the lateral connectivity of the natural fracture system between BB-1 and BB-1z. This is a key piece of reservoir information, which along with the analysis of 554 ft of core and electric logs, will greatly aid the placement of future wells and ultimately help optimise any potential production from the reservoir at Broadford Bridge."

Make of this what you will.

StockMarketWire.com
UK Oil & Gas Investments completed the acquisition of a 1.9% shareholding in Horse Hill Developments (HHDL) from Regency Mines, previously announced on the 10 July 2017.

The Company now holds a 32.435% beneficial interest in the onshore Weald Basin licences PEDL137 and PEDL246.

The Licences, covering an area of 55 square miles (143km2) north of Gatwick Airport, contain the Horse Hill-1 (HH-1) Portland sandstone and Kimmeridge Limestone oil discoveries.

As previously reported on 21 March 2016, HH-1 flow tested at a significant commercial aggregate stable dry oil rate of 1,688 barrels of oil per day from the uppermost two Kimmeridge Limestone intervals and the overlying Portland reservoir.

Regulatory permissions are being sought for a significant long-term production testing and appraisal programme of the productive Kimmeridge Limestone and Portland reservoirs.

For £323,000, the company will receive a further 1.235% beneficial interest in the licences via the purchase of Regency's 1.9% shareholding in HHDL.

The total consideration, with an effective date of 28 June 2017, is comprised of £54,498 payable in cash and £268,502 in the form of the issue of new ordinary shares in UKOG.

The calculation of the consideration shares is based on using a share price equivalent to the 30-day volume weighted average price of UKOG share prior to 29 June 2017.

As such application has been made for 17,361,862 new ordinary shares to be admitted to trading on AIM and it is anticipated that trading in such shares will commence on or around 30 August 2017.

Following Admission, the company's enlarged issued share capital will comprise 3,538,120,962 ordinary shares.

The company does not hold any shares in treasury. This figure of 3,538,120,962 ordinary shares may be used by shareholders in the company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the company under the FCA's Disclosure and Transparency Rules.

HHDL is a special purpose vehicle, which owns a 65% working interest and operatorship of the licences.

UKOG on completion will own a 49.9% beneficial shareholding in HHDL, which equates to a 32.435% net working interest in the licences. The remaining 35% interest in the licences is held by Magellan Petroleum (UK)

And the parent company of Magellan since early this year is ???? And the largest holder of said parent company's stock is ???? And the company with the huge war chest available to it for 2017/18 is ???? And the Bouygues are from ???? And the Weald Basin covers a large area including ???? Draw your own conclusions.

Does all of that matter too much? Australian, USA, French, British.....so long as the asset gets developed.

Agree absolutely. Jobs will be created and taxes will be paid in the UK.

Trading bounce today.

so where's this much noised RNS about zillions of barrels of oil?

7.40 v 7.45p - 05 Sep 2017 16:01

Ready for bounce the last 30 min.

Had earlier a 38.2% intraday reetracement @ 7.30p and never came further down than that. Level 2 has improved for the last 20 minutes.

38.2% intraday retrace
-

7.575 +1.10p

Last minute buyers are pushing the price higher

Well...testing is ongoing...keep an eye also on Providence Resources....you never know...might strike lucky...two big punts here....

Anyone subscribing to the MoneyAM Level 2 platform please take note that most days it is not reporting the correct Trade High nor Trade Low information and "some days" not reporting the correct Opening Price or Closing Price.

The reason is because MoneyAM's Level 2 system is not correctly sensing the Auto Trades or Ordinary Trades correctly so is wrongly reporting them

8.975p +1.40p (+18.48%)

A late surge as the RNS finally came along............

"UKOG" - Operational Update,

Further Oil Recovered to Surface, Extended Flow Testing Phase Commences
Broadford Bridge-1 and 1z Exploration Well, Weald Basin, UK

Highlights

· Broadford Bridge-1z ("BB-1z") sidetrack completed as a potential oil producer with an aggregate total of 1,064 ft of perforations over eight naturally fractured Kimmeridge zones, including a new uppermost reservoir zone, Kimmeridge Limestone 5 ("KL5"), where mobile light oil was recovered to surface in BB-1 cores.

· Following each of four extensive perforation runs, a pressure increase was observed in the well annulus together with live, mobile oil shows at surface.

· Drilling and completion phases now successfully completed. Drilling rig departed safely from the well site without incident.

· Rig-less extended flow testing phase now underway. Flow testing over multiple Kimmeridge reservoir zones to commence following rig-up of well test equipment. All necessary regulatory permissions for flow testing in place..............
UKOG Operational Update

a promising RNS but no more than that ......

The comprehensive extended flow test programme is specifically designed to gather further supportive evidence that the Kimmeridge contains mobile light oil within an extensive continuous oil deposit, which can flow to surface at commercial rates and in commercial volumes. Flow test results will be reported in due course.

Oil is there and I'd be badly surprised if this isn't a commercial discovery....looking really good here....

.

a bit premature to say the least
it would have been prudent to have sold at least some first thing - ie on the news - for sp looks to have at least more short-term downside than up

Stick to your shares "C" it would be...

UKOG's upbeat update has WH Ireland eager for more data

11:09 07 Sep 2017
The completion of the first UKOG-operated well represents an important operational milestone

Onshore drilling
UKOG has commenced the flow testing phase at its BB-1 and 1z exploration well, located in licence PEDL234

WH Ireland has been caught on the hop by yesterday's positive operational update from UK Oil & Gas Investments PLC (LON:UKOG).

The broker has its target price under review after being surprised by the increased column of fractured Kimmeridge formation announced in yesterday's stock market statement, released late in the afternoon.

The company said it has completed perforating and well completion operations at the Broadford Bridge-1z well and that it is rigging-up well production testing equipment, while all permissions are in place to test the well.

Operational milestone
The completion of the first UKOG-operated well represents an important operational milestone given that it was safely and efficiently drilled while successfully extrapolating extensive cores, wireline and pressure data, WH Ireland said.

“The company indicated that an aggregate total of 1,064 feet of naturally fractured Kimmeridge zones have been perforated, inclusive of limestones and shales, which the company believes may both be effective reservoirs based on comprehensive analysis inclusive of direct core analysis and the observation of movable oil. Pressure dynamics upon perforating indicate the movement of fluid into the well at each zone, as well as oil seen at surface,” the broker said.

“As a reminder, the Horse Hill-1 (“HH-1”) well was production tested at an aggregate rate of 1,688 b/d of which 1,365 b/d was from the Kimmeridge Limestone (“KL”) KL4 and KL3 horizons, with the remainder from a conventional discovery that is a separate play to the Kimmeridge formation. The cited production rates for the two Kimmeridge horizons were from perforated intervals aggregating 168 feet (vertical). Stabilised flow was achieved over a period of 4.0 hours and 7.5 hours for KL4 and KL3 respectively,” the broker added.

More data needed
WH Ireland is now awaiting more data to give it more to go on before setting a new target price, but it has tried out a few scenarios.

For perspective, based on the extrapolation of a production profile from the initial production rates tested at the HH-1 from two horizons and applying a US$55-a-barrel-flat Brent commodity price assumption, WH Ireland estimates each well would have an after-tax net present value (applying a 10% discount rate) of US$8.9m.

This valuation assumes the well produces a total of 1.0mm barrels of oil, that it comes on-stream at 1,250 barrels a day (b/d) and that the well’s production rate declines to 335 b/d at the end of the first year before stabilising.

“Admittedly, in the absence of production history the level of uncertainty in relation to the declines is heightened, which is why the forthcoming test is of paramount interest. We are now looking at a situation where the scale of the column is significantly greater than we had foreseen; however, extrapolating the implication of more fractured reservoir to a precise production rate and decline curve is speculative and we are hesitant to provide estimates in this context,” the broker said.

UKOG's shares rose from 7.58p yesterday to close at 8.97p, but were down 2.3% at 8.77p in late morning trading on Thursday.

So far the 8.55p was the low of the day and has moving up and down since but the thrend so far is for the bounce

there was plenty od delayed 500K, but seems those are not appearing any more
Most likley some were shorting first thing in the morning as it was marked up just short of 10p

it's a view mentor, though i happen not to agree
imo, there'll be plenty of stale bulls bailing out before the next meaningful rns