Licence Number: PEDL234
UKOG interest: 100%
UKOG acquired exploration licence PEDL234 (interest 100%) in 2016, significantly increasing its acreage holding within the KL’s prime prospective area. The licence was operated by Kimmeridge Oil & Gas Limited (“KOGL”), a wholly-owned subsidiary of UKOG. KOGL has been renamed UKOG (234) Ltd.
The onshore licence, PEDL234, covers 300 km². The licence acquisition included the existing Broadford Bridge well pad, along with planning permission and Environmental Agency (“EA”) consent to drill the exploratory well (“BB-1”).
UKOG, as disclosed within the analysis in section 10.2.2 of the CPR, has previously conducted analysis of PEDL234 and suggests that KL oil potential is also prevalent in a similar way to that at Horse Hill. BB-1 drilling commenced in May 2017 and was designed to penetrate the KL units at an inclination and orientation to test the open natural fractures within the KLs.
Mobile light oil was recovered from open fractures in the KL5 cores within the Kimmeridge section. BB-1 was sidetracked to Broadford Bridge-1z (“BB-1z”) in August 2017 due to difficult hole conditions to seek to maximise the Kimmeridge flow test potential.
BB-1z was completed as a potential oil producer with a multizone completion and over 1,000ft of perforations. The well was tested over multiple zones within the KL0-KL5 sections with the well free flowing light oil for short periods during the clean-up operations. Oil was also recovered to surface via pumping from multiple zones. The oil flowed to the surface during this testing programme, although at likely sub commercial rates.
This has led the company to explore new completion methods that might achieve higher sustainable flow rates. The BB-1z oil discovery within PEDL234 licence area is reported in section 10.2.2 of the CPR with no resource associated with it. The CPR details that Godley Bridge, a discovery, which is combined with PEDL235 and adjoins PEDL234, may extend into PEDL234, in which UKOG has a 100% interest.
At Godley Bridge, wells GB-2/2Z and Alfold-1 failed to find hydrocarbons unlike Godley Bridge-1. See section 10.1 of the CPR, page 106 for further information. The report also notes that the previous competent persons reports for IGas, the operator of PEDL235, have calculated estimated of Contingent Resource of between 5 and 10 bcf. The CPR states that after workover operations had been completed, testing continued and recovered 38 degree API oil.
UKOG’s analysis suggests that the Upper Jurassic Kimmeridge potential covers most of PEDL234, north of BB-1. To further prove the potential of the Kimmeridge reservoirs, UKOG is working to acquire 2 further drilling sites in PEDL234. If this is successful, planning applications are expected to be submitted for the first site (which neighbours Godley Bridge) later this year.
The well results from the UKOG operated wells at Horse Hill and Broadford Bridge, which have tested the KL, as well as the reported results of Brockham-X4Z, show a consistent picture of Kimmeridge prospectivity across these licence areas. The Kimmeridge oil potential appears to be regionally extensive with thick sections of high total organic carbon (“TOC”) shale with limestone beds; all of which are naturally fractured. To date, oil has also flowed from all three exploration wells that has tested the KL. At present, significant additional work is required to determine the development potential of these reservoirs.
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Licence Number: PEDL234