UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that the Resan JV (UKOG 50% non-operated interest) having secured a suitable small rig to drill the new Pinarova-1 shallow oil exploration well, now expects to commence site construction within the next 7-10 days. Site construction is expected to take approximately 14-21 days and, consequently, given no weather-related construction delays, drilling to a total depth of around 500-550m is expected to commence directly after site completion towards the end of March to early April 2023. The Pinarova-1 campaign is expected to take up to 28 days to deliver a well completed for future oil production.
As per the Company's 11th January 2023 release, Pinarova-1, located 6 km north of the Basur-1 oil discovery, is designed to test a working hypothesis, supported by well and seismic data, that the active 41.7°API light oil seep found last summer in a seismic shot hole above the Pinarova structure (see RNS of 30 June 2022), is directly fed by and connected to an underlying light oil accumulation of some 9 km˛ areal extent within Eocene Hoya group limestones, 300-645m below surface.
The presence of movable oil within Pinarova is also indicated by results of the 2018 Kezer-1 shallow geothermal well, located near the apex of the Pinarova geological feature. Kezer-1 reported strong oil shows throughout the Hoya and is reported to have flowed heavily oil-cut fluids to surface on a short open-hole geothermal test.
The Company and its joint partner Aladdin Middle East consider Pinarova to offer similar potential success case outcomes to a Basur-4 appraisal well, but at much lower drilling and development costs and with a shorter time to execution and delivery.
Estimated gross Pinarova-1 drilling costs range from $0.4 million dry hole to $0.63 million tested and completed as a pumped oil producer. The Company has ample funds to cover its share of the planned drilling and testing campaign.
Stephen Sanderson, Chief Executive, commented:
"Pinarova's prospectivity, potential success case oil volumes and modest drilling costs make it an attractive stand-alone project that could, in the success case, deliver oil production in H1 2023. Given the positive shallow oil seep evidence plus the good light oil shows encountered within Pinarova by the Kezer-1 geothermal well, the new well will seek to establish if that oil is present in commercially viable saturations and volumes that can be pumped to surface. We look forward to the impending start of site construction and subsequent drilling directly upon its completion."
Qualified Person's Statement
Matt Cartwright, UKOG's Commercial Director, who has 39 years of relevant experience in the global oil industry, has approved the information contained in this announcement. Mr Cartwright is a Chartered Engineer and member of the Society of Petroleum Engineers.