UKOG’s first investment, also in December 2013, was to acquire a 7.5% ownership interest in Horse Hill Developments Ltd (HHDL), which owns 65% of the two Horse Hill licences, located about 3 miles from Gatwick Airport. Subsequently, UKOG further increased its interest in HHDL to 30%, making UKOG the largest HHDL shareholder today.
In February 2014, the Company acquired a 6% ownership interest in Angus Energy Limited (Angus), which operates and produces low cost oil from both the Lidsey and Brockham oil fields in the UK Weald Basin south of London. Like UKOG, Angus is an owner of HHDL.
A further key transaction by UKOG was the acquisition in July 2014 of the UK subsidiary companies and UK assets of Northern Petroleum (NOP):
- Three NOP companies were acquired and renamed UKOG (GB) Limited, UKOG Weald Limited and UKOG Solent Limited
- The acquisition was completed in October 2014
- Five UK licences were acquired, four onshore and one offshore, all located in the South of England
- The assets acquired include the Horndean and Avington onshore producing oil fields, an offshore Isle of Wight exploration licence and the Baxters Copse and Markwells Wood onshore oil discoveries
- In October 2014, UKOG jointly applied for a 200 square km onshore licence, adjacent to the offshore Isle of Wight licence, including an exploration well, as part of the UK’s 14th Landward Licence Round (14th Round)
HHDL’s milestones in 2014 included:
- September - November 2014: Drilling operations at the Horse Hill-1 exploration well (HH-1)
- Announcement of conventional Upper Portland Sandstone oil discovery at HH-1
- December 2014: Update on HH-1 discovery, including the recognition of the Upper Jurassic limestone oil potential.
2015 has been a significant year for UKOG, with key events and announcements including:
- January 2015: Appointment of Stephen Sanderson as CEO of UKOG
- April 2015: Nutech independently estimates the P50 (most likely) stock tank oil initially in place (OIP) in the HH-1 discovery to be 158 million barrels per square mile, excluding the Upper Portland Sandstone discovery
- May 2015: Xodus’ independent study of the HH-1 Upper Portland Sandstone discovery estimates a P50 OIP of 21.0 million barrels
- June 2015: Schlumberger independently estimates an overall OIP for the Jurassic section of the HH-1 well to be 255million barrels per square mile, excluding the Upper Portland Sandstone discovery. Nutech estimate P50 OIP of 9,245 million barrels for the total Jurassic shale plus tight conventional reservoir section within the 55 square miles area covered by the Horse Hill licences (PEDL137 and PEDL246). UKOG announces it has agreed a farm-in with Egdon Resources Limited (Egdon) to farm into 20% of Egdon’s interest in the PEDL143 licence, located just to the west of Horse Hill; PEDL143 contains the significant and undrilled Holmwood prospect
- July 2015: Appointment of Stephen Sanderson as Executive Chairman of UKOG
- August 2015: Schlumberger independently estimates an overall OIP for the Jurassic section within the 55 square miles area covered by the Horse Hill licences (PEDL137 and PEDL246) to be 10.993 billion barrels
- September 2015: Xodus’ CPR of onshore Markwells Wood -1 estimates a P50 OIP of 1.25 million barrels. Appointment of Matt Cartwright as Chief Operating Officer
- October 2015: UKOG published a Weald Basin Conceptual Low-Impact Oil Development Plan for Jurassic Limestones provided by Xodus and Barton Willmore. Nutech independently estimates a gross P50 OIP of 124 billion barrels for the Wider Weald Basin (1,261 square mile Area of Interest “AOI”), a gross P50 OIP of 15.7 billion barrels for UKOG Licence Areas (151 square miles) and a net attributable P50 OIP of 3.9 billion barrels for UKOG’s economic interests in the Licence Areas. Appointment of Kiran Morzaria to UKOG’s Board as Finance Director
- November 2015: UKOG commenced trading on the ISDX Growth Market under the ticker UKOG. Received final regulatory consent from the Oil and Gas Authority (“OGA”) to acquire a 20% interest in UK onshore Weald Basin licence PEDL143 (Holmwood prospect). Acquisition of additional 10% interest in PEDL143. UKOG receives consent from the UK Environment Agency to flow test the Horse Hill-1 oil discovery well
- December 2015: UKOG announces that its 14th Round application for an onshore Isle of Wight licence has been successful. UKOG receives OGA approval of the second PEDL143 farm-in
2016 newsflow includes:
- January 2016: UKOG announces that the OGA has granted consent for an extended flow test over three separate zones in the Horse Hill-1 oil discovery well. All necessary permissions to test the well are now in place
- Xodus calculates gross P50 OIP of 219 MMbbl is contained in the Arreton-2 oil discovery. Xodus further calculates that the Arreton Main structure contains aggregate P50 net contingent resources of 10.2 MMbbl and that the low-risk undrilled adjacent Arreton Prospects contain aggregate P50 net prospective resources of 6.8 MMbbl
The OIP hydrocarbon volumes estimated should not be considered as either Contingent or Prospective Resources or Reserves.
The Company continues to maximise value from its existing investments and to seek further opportunities to grow and add to its portfolio in its core Weald Basin and Wessex Basin area in the south of England.