Challenge Constraints to Become a First-Mover
Think ‘out-of-the-box’ to challenge constraints and prevailing subsurface wisdom in order to create new ideas and project opportunities in the oil and gas sector. Employ UKOG’s sector experience, knowledge and balance sheet strength to leverage these ideas to get into new plays, concepts and technologies first, or early stage, to provide rapid growth potential that delivers shareholder value. UKOG’s acquisitions and positions in the Weald tight oil plays, Markwells Wood field development and Isle of Wight exploration demonstrate this strategy in action.
Invest in and Apply Appropriate Technology and Techniques
UKOG’s focus on full understanding of the technical nature and related uncertainties of its assets and opportunities is fundamental to remaining ahead of the competition. UKOG’s use of world-class service companies and cutting edge technology to unlock unseen potential in the Weald is a living example of this.
Grow From a Solid Foundation
UKOG will continue to build a portfolio that combines and balances low-risk stable production and development opportunities with higher-risk/higher-reward ‘company maker’ exploration opportunities. Portfolio growth will be via a mixture of organic in-house projects and via selective acquisitions. Emphasis will be given to projects that offer potential for near term profitable revenues to fund further growth. The portfolio will continue to contain both conventional and tight oil and gas assets that exhibit break-even economics at, or below a $40 per barrel Brent oil price. Exploration assets should have estimated finding costs significantly below $10 per recoverable barrel. Where appropriate and advantageous, portfolio risk will be further spread via limiting working interests and financial exposure.
Respect the Locality
UKOG’s aim is to ensure that operations related to its investments are conducted with sensitivity to the local area and residents. Where possible and practical, UKOG will take an innovative approach to reducing visual, noise and infrastructure impacts even when this may in the short term add to up-front costs.
UKOG’s initial portfolio focus is UK onshore oil and gas in southern England, where our global experience and knowledge can be utilised to unlock value not traditionally recognised by UKOG’s competitors. Specific targets are as follows:
- Bring existing Markwells Wood, Horse Hill and Baxters Copse conventional discoveries into production as soon as practicable, where economic and prudent
- Deliver Kimmeridge limestone tight oil ‘proof of concept’ via the Horse Hill flow test and participation in two further exploration wells by mid-2017
- Focus Isle of Wight efforts towards an early appraisal and development of the Arreton missed oil pay opportunity
- Significantly expand and strengthen UKOG’s licence position in the Weald by end-2016.