Rocketing this morning on a superb upgrade !...

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

StockMarketWire.com
UK Oil & Gas Investments was informed by Horse Hill Developments (HHDL) the operator of Horse Hill Licences PEDL 137 and PEDL 246, containing the Horse Hill-1 (HH-1) oil discovery, that the Environment Agency granted the necessary permits to enable HHDL to carry out extended flow tests at HH-1, store any produced oil, drill and test both a side-track from the existing HH-1 well and new borehole HH-2.

The company has a 32.435% interest in the licences.

As previously reported, an application for long term production testing and further appraisal drilling was submitted to Surrey County Council in October 2016 and is now confirmed to be decided at the Council's planning committee meeting on 18 October 2017.

Members of the planning committee completed a scheduled visit to the Horse Hill site yesterday, 7 September, in preparation for the October meeting.

The company therefore envisages that these operations will commence in the fourth quarter of 2017 on grant of the necessary remaining regulatory permissions.

StockMarketWire.com
UK Oil & Gas Investments announced that West Sussex County Council's Planning Committee have unanimously approved a one-year extension to the existing planning permission covering its 100% owned BB-1 and 1z exploration well, located in licence PEDL234.

The extension, which will expire in September 2018, enables the company to complete the full 14-week extended flow test programme as originally permitted and planned.

In addition, the Oil and Gas Authority's flow test consent has been similarly extended to December 2017.

Well testing equipment is now fully assembled and testing operations are underway.

As previously stated, the 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.

BB-1
BB-1 and BB-1z, an exploration step-out, is located south of Billingshurst, West Sussex, within the 300km2 PEDL234 licence, in which the company has a 100% interest via its ownership of the licence's operator, Kimmeridge Oil & Gas (KOGL).

As previously reported, in the company's opinion, the multiple positive indications of mobile light oil observed throughout the entire naturally fractured KL0 to KL5 target reservoir sections are supportive that a significant continuous oil deposit, with a vertical extent of around 1,400 ft has been demonstrated by BB-1 and 1z.

In 2016, two units of this zone, KL4 and KL3, flowed oil at a stable aggregate rate of 1,365 barrels per day in 2016 in the Horse Hill-1 discovery near Gatwick Airport.

This continuous oil deposit therefore likely underlies the entire PEDL234 licence and a significant area of the wider Weald Basin, including the Horse Hill-1 Kimmeridge oil discovery some 27 km to the north east.

The company has the largest licence holding in the Weald Basin and within the prospective area of the Kimmeridge play.

Very quiet here...but news must be coming soon.....if flows are successful within the tested zones : a jump above 10p could be on the cards !.....

Sold late on the 7th Sept @ 8.53p on a T+18
bought back on the 29th last Friday @ 7.654p, last day of the closing day on the previous buy

The shares a forming a floor for the last past days, with 7.20p being reached a few times now.

Well...there's oil there but going by the update it needs reworking....so is this an opportunity to add or not ?.....I reckon the sp will rebound....as the update is not all that bad....just perhaps a temporary setback...

there's a surprise .... the curse of the lenigas connection

Cement casing not holding...reparable apparently.....might be worth a punt Cynic....

mentor will already have bought in at the bottom - as he always does

looking back, i have been warning that jubilation was premature since august

Mentor will be using his Carillion profits. Somehow, he managed to buy at 100p and still come out on top.

It's risky but the sp is volatile...and if you can time it right : there is a buck to be made here....the testing/flowing is ongoing and there's a big chance that this is a commercial discovery on our doorstep .....

I would recommend a buy this morning.....

It's going back to 6p plus...honest........

you're welcome with your money, but can't see that i'll bother to try to make a quick buck again