UK Oil & Gas PLC is pleased to announce that a workover campaign, culminating in the deeper seating of a downhole pump in Q4 2024, has achieved a significant increase in the Horndean field's production and resultant revenues (UKOG 10% interest). The results and improved 2025 budget forecasts are summarised below:
· January 2025 full field production averaged 200 barrels of oil per day ("bopd"), 60% higher than the 125 bopd achieved in January 2024.
· Based upon the improved post-workover performance, the operator, Star Energy, now forecasts 2025 annual field production to be 61,195 barrels ("bbl") compared to 49,402 bbl produced in 2024, a material 24% increase if achieved. The forecast assumes an average daily rate of 168 bopd.
· As January 2025's 200 bopd average is already 19% above the 168 bopd 2025 annual field production forecast, further potential exists for increased 2025 production over the forecast.
· 2024 total field production also outperformed the budget forecast by 11%, achieving 49,402 bbl versus the forecast of 44,379 bbl.
· The recent workovers, combined with the prior installation of new electric pumps in 2023, have further increased the trend of improved field performance and low decline seen in 2023's production figures, which showed a 22% increase in daily production versus 2022 (see RNS 28th June 2024).
Stephen Sanderson UKOG's Chief Executive commented:
"We are delighted with the clear success of the workover programme and the materially increased production rates obtained. Horndean's production rate, decline and revenues continue to exceed expectations, further underscoring its value to our portfolio."
