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UKOG Starts Extended Flow Testing at Broadford Bridge-1 & 1z Well

Source: www.gulfoilandgas.com 9/13/2017, Location: Europe

UK Oil & Gas Investments PLC (UKOG) is pleased to announce 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.

About BB-1

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

Stephen Sanderson, UKOG's Executive Chairman, commented:

"West Sussex's unanimous approval of the extension is further recognition of the Company's operational competence, sound environmental practices and positive engagement with all stakeholders. I look forward to a successful flow test outcome."

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