Licence number PEDL331: Onshore 14th Round  
UKOG interest: UKOG 65%

UKOG  holds a 65% interest in the Arreton onshore licence PEDL331,

The January 2016, Xodus' independent report allocated a gross mean aggregated oil in place of 227 million barrels ("MMbbl") to the onshore Arreton oil discovery and associated Arreton South and North satellite prospects. Recoverable gross 2C Contingent Resources were calculated as 15.7 MMbbl, with 10.2 MMbbl net to UKOG. The Company holds a 65% interest in PEDL331.

Arreton site selection and regulatory permitting activities are now underway to permit a planned appraisal drilling campaign in the first half of 2019.

Wells, Prospects and Leads Offshore and Onshore Isle of Wight


Source: UKOG/DECC/ESRI

UKOG has estimated unrisked gross STOIIP for the M Prospect. Probabilities of success have also been estimated. Two alternatives are shown, for the Triassic being either oil or gas charged.

UKOG’s Calculated M Prospect Portland and Triassic Oil Case, Unrisked, Gross STOIIP, MMbbl

 

Reservoir Objective

Low
(P90) OIIP MMbbl

Most Likely (P50) OIIP MMbbl

High
(P10) OIIP MMbbl

Probability of Success
(“POS”)

Total

P1916

Total

P1916

Total

P1916

%

Portland Limestone

17.6*

15.7*

40*

35.3*

80*

70.2*

35%*

Triassic Sherwood Sst

21.9*

21.7*

76.5*

71.3*

205**

169**

11**-20*%

* 4-way dip closure
** Dependent upon a combination of 4-way dip closure plus downthrown fault seal

UKOG’s Calculated M Prospect Triassic Gas Case, Unrisked, Gross GIIP, bcf

 

Reservoir Objective

Low
(P90) GIIP
bcf

Most Likely (P50) GIIP
bcf

High
(P10) GIIP
bcf

Probability of Success
(“POS”)

Total

P1916

Total

P1916

Total

P1916

%

Triassic Sherwood Sst

57.3*

56.8*

197*

184*

520*

426*

11**-20*%

* 4-way dip closure
** Dependent upon a combination of 4-way dip closure plus downthrown fault seal
UKOG has a net attributable interest of 77.5% in P1916

UKOG commissioned Xodus Group to provide an independent evaluation of the OIP and recoverable resources for the Arreton discovery (UKOG 65%). Xodus concluded that the Arreton-2 undeveloped oil discovery (Arreton Main), and the adjacent low-risk Arreton North and South Prospects (Arreton Prospects) contain an aggregate gross P50 OIP of 219 MMbbl, within Purbeck, Portland and Inferior Oolite limestone reservoirs. 

Xodus calculated that Arreton Main contains net P50 contingent resources of 10.2 MMbbl, The Arreton Prospects are calculated to contain net P50 prospective resources of6.8 MMbbl, solely within the Portland reservoir unit. 

More information on the Xodus independent evaluation can be found here

Gross STOIIP (MMbbl) Low2 Best High Mean
Arreton Main Portland 6.8 21.3 61.6 29.3
Arreton Main Purbeck 4.7 9.2 19.6 11.2
Arreton Main Inferior Oolite 52 87.5 137 91.7
Arreton North Portland 3.7 22 59.9 27.6
Arreton South Portland 14.2 55.2 138 67.4
Total STOIIP3 144 219 322 227
Oil Contingent Resources
(MMbbl)
Gross Oil Contingent Resources Oil Contingent Resources
Net to UKOG
Commercial
Risk Factor
  1C 2C 3C 1C 2C 3C (%)6
Arreton Main Portland 0.8 2.6 7.8 0.5 1.7 5.0 50%
Arreton Main Purbeck 0.6 1.1 2.5 0.4 0.7 1.6 50%
Arreton Main Inferior Oolite 6.2 10.8 17.6 4.0 7.0 11.4 50%
Total Contingent Resources 9.9 15.7 24.1 6.4 10.2 15.7  
Oil Contingent Resources
(MMbbl)
Gross Oil Prospective Resources Oil Prospective Resources
Net to UKOG
Commercial
Risk Factor
  Low Best High Low Best High COS (%)
Arreton North Portland 0.5 2.7 7.6 0.3 1.8 4.9 69%
Arreton South Portland 1.7 6.8 17.4 1.1 4.4 11.3 73%
Total Prospective Resources 4.0 10.5 21.6 2.6 6.8 14.0