RNS Number : 1798C UK Oil & Gas Investments PLC 13 March 2014

Transcription

1 RNS Number : 1798C UK Oil & Gas Investments PLC 13 March 2014 Forimmediaterelease 13March,2014 UKOil&GasInvestmentsPLC ("UKOG"orthe"Company") ReservesandResourcesStatementsfortheLidseyandBrockham OilFields,UK UKOG (AIM: UKOG) today announces the conclusions of the independent reserve and resource reports ("CPRs") prepared by RPS Energy Consultants Limited ("RPS") for both the Lidsey and Brockham Fields in the Weald Basin, UK for the operator Angus EnergyLtd("AngusEnergy"or"Angus"). UKOGhasaninterestinthebothfieldsbywayofa6%ownership interestinukconventionaloilproducerangusenergywhichowns 70%oftheLidseyFieldand80%oftheBrockhamField. Highlights: LidseyField(70%ownedandoperatedbyAngusEnergy) o oilin placep50bestcaseof9.52mmstb(gross) o 2Preservesof36.0Mstb(gross) o 2Ccontingentresourcesof413.6MMstb(gross) Brockham Field (80% owned and operated by Angus Energy) o Oilin placep50bestcaseof3.62mmstb(gross) o 2Preservesof47.0Mstb(gross) The CPRs calculate the reserves and resources with an effective dateof31december2013.anewreserveandresourcereportwill becommissionedafterthedrillingofthebrockhamside trackwell,

2 due to start before the end of March, and the drilling of the new Lidsey 2welltobedrilledduringAprilandMay2014. Thegrossin placevolumesforthebrockhamfieldareaspreviously announcedon28february2014. DavidLenigas,theCompany'sChairman,commented: "There is a combined 13 million barrels (gross) of contained oil withinthesetwoconventionaloilfieldssouthoflondonandukog isanticipatingsolidproductionfromboththebrockhamside track well and Lidesy 2 well planned for the first half of this year, after whichwecouldexpectasignificantincreasein2preservesforthe Fields." Enquiries: UK Oil& Gas Investments PLC Tel: David Lenigas / Donald Strang Beaumont Cornish (Nominated Adviser) Tel: Roland Cornish / Michael Cornish / Emily Staples XCAP Securities PLC (Corporate Broker) Tel: David Lawman Square 1 Consulting (Public Relations) Tel: David Bick/Mark Longson SummaryfromtheRPSCPRs,dated10March2014: The CPRs calculate the reserves and resources with an effective dateof31december2013andhavebeenpreparedinaccordance with the SPE (Society of Petroleum Engineers) Standard. The operator of the Lidsey and Brockham Fields is Angus Energy. All reservesandresourcesarestatedforoilandliquids.thereareno gasreservesorresourcesincludedinthecprs.thecprssetoutthe reserves and resources on a gross basis and a net basis (Angus Energy owns 70% of the Lidsey Field and 80% of the Brockham Field). UKOG has a 6% ownership interest in Angus Energy and thereforeanindirectnetattributableinterestof4.2%ofthelidsey

3 Fieldand4.8%oftheBrockhamField. ThefollowingsetsoutacombinedsummaryoftheCPRsprepared by RPS, who have reviewed this announcement and consented to theinclusionofandreferencetothecombinedsummaryextracted from the CPRs below and the other technical information relating tothelidseyandbrockhamfieldscontainedinthisannouncement: "EVALUATIONOFLIDSEYANDBROCKHAMFIELDS,ONSHOREUK In response to Angus Energy Limited's request of February 2014 andtheletterofengagementdated5 th February2014withAngus EnergyLimited(the"Agreement"),RPSEnergyConsultantsLimited ("RPS") has completed an independent evaluation of liquid hydrocarbons in Licence PL241 in the United Kingdom (the "Properties") in which Angus Energy Limited ("Angus") has an interest. This report is issued by RPS under the appointment by Angus Energy Limited and is produced as part of the Services detailed thereinandsubjecttothetermsandconditionsoftheagreement. This report is addressed to the Company and Third Parties as definedintheagreementandisonlycapableofbeingreliedonby the Company and any Third Parties under and pursuant to (and subjecttothetermsof)theagreement. The Company may disclose the signed and dated report to third partiesascontemplatedbythepurposedefinedintheagreement but in making any such disclosure the Company shall require the thirdparty(includinganysponsorandthirdparties)toacceptitas confidential information only to be used or passed on to other personsasthecompanyispermittedtodoundertheagreement. The report is based on data and information available up to February 28 th An effective date of 31 st December 2013 has beenassumedfortheevaluation. TheServiceshavebeenperformedbyanRPSteamofprofessional petroleumengineers,geoscientistsandeconomistsandisbasedon

4 the Operator's data, supplied through Angus. All Reserves and Resourcesdefinitionsandestimatesshowninthisreportarebased on the 2007 SPE/AAPG/WPC/SPEE Petroleum Resource ManagementSystem("PRMS"). Our approach has been to review the Operator's technical interpretation of their base case geoscience and engineering data for the field for reasonableness and to review the ranges of uncertainty for each parameter around this base case in order to estimatearangeofpetroleuminitiallyinplaceandrecoverable. SUMMARYOFRESERVESANDRESOURCES LidseyField VolumesofhydrocarbonsinitiallyinplaceintheLidseyfield,asof 31 December 2013, that have been estimated by RPS are summarisedintable1below: Table1:LidseyFieldInPlaceVolumes,OnBlock In PlaceVolumes(MMstb) NetAngusWorkingInterest Gross(OnBlock) 1 Field (OnBlock)1,2 Low (P90) Best (P50) High (P10) Low (P90) Best (P50) High (P10) LidseyField %oftheLidseyFieldlieswithinLicencePL241 2.AngusEnergyworkinginterestinLicencePL241is70% ReservesintheLidseyfieldasof31December2013thathavebeen estimatedbyrpsaresummarisedintable2below: Field Table2:LidseyFieldReservesasof31December2013 GrossField Reserves(Mstb) NetAngusWorkingInterest 1P 2 2P 3P 1P 2 2P 3P LidseyField TheLidseyfieldliesinLicencePL241.AngusEnergyworkinginterestinLicencePL241is70% 2.The1PcasehasbeentruncatedtotheanticipatedLicenceexpiryaspublishedbyDECCof

5 01/12/2017 ContingentResourcesintheLidseyfieldasof31December2013 thathavebeenestimatedbyrpsaresummarisedintable3below: Table3:LidseyFieldContingentResources ContingentResources(Mstb) 1 Field GrossField NetAngusWorkingInterest 1C 2C 3C 1C 2C 3C LidseyField Noeconomiccutoffapplied.Anominalproductioncutoffof6bopdor1/1/2033(whicheverearlier) appliedwithanassumedstartdateof1/1/ TheLidseyfieldliesinLicencePL241.AngusEnergyworkinginterestinLicencePL241is70% BrockhamField VolumesofhydrocarbonsinitiallyinplaceintheBrockhamfield,as of 31 December 2013, that have been estimated by RPS are summarisedintable4below: Field Table4:BrockhamFieldInPlaceVolumes Low (P90) In PlaceVolumes(MMstb) Gross NetAngusWorkingInterest1 Best High Low Best High (P50) (P10) (P90) (P50) (P10) BrockhamField TheBrockhamfieldliesinLicencePL235.AngusEnergyworkinginterestinLicencePL235is80% ReservesintheBrockhamfieldasof31 st December2013thathave beenestimatedbyrpsaresummarisedintable5below: Field Table5:BrockhamFieldReservesasof31December2013 Reserves(Mstb) GrossField AngusWorkingInterest 1 1P 2 2P 3P 1P 2 2P 3P BrockhamField

6 1.TheBrockhamfieldliesinLicencePL235.AngusEnergyworkinginterestinLicencePL235is80% 2.The1PcasehasbeentruncatedtotheanticipatedLicenceexpiryaspublishedbyDECCof 27/10/2017. QUALIFICATIONS RPS is an independent consultancy specialising in petroleum reservoir evaluation and economic analysis. The provision of professional services has been solely on a fee basis. Mr Gordon Taylor, Director, Geoscience for RPS Energy, has supervised the evaluation. Mr Taylor is a Chartered Geologist and Chartered Engineerwithover30yearsexperienceinupstreamoilandgas. OtherRPSemployeesinvolvedinthisworkholdatleastaMasters degree in geology, geophysics, petroleum engineering or a related subject or have at least five years of relevant experience in the practiceofgeology,geophysicsorpetroleumengineering. BASISOFOPINION The results presented herein reflects our informed judgement based on accepted standards of professional investigation, but is subject to generally recognised uncertainties associated with the interpretationofgeological,geophysicalandengineeringdata.the Services have been conducted within our understanding of petroleumlegislation,taxationandotherregulationsthatcurrently applytotheseinterests.however,rpsisnotinapositiontoattest to the property title, financial interest relationships or encumbrancesrelatedtotheproperties. Our estimates of resources and value are based on the data set available to, and provided by Angus. We have accepted, without independent verification, the accuracy and completeness of these data. ThereportrepresentsRPS'bestprofessionaljudgementandshould notbeconsideredaguaranteeorpredictionofresults.itshouldbe understood that any evaluation, particularly one involving explorationandfuturepetroleumdevelopments,maybesubjectto significantvariationsovershortperiodsoftimeasnewinformation

7 becomes available. As stated in the Agreement, RPS cannot and does not guarantee the accuracy or correctness of any interpretation made by it of any of the data, documentation and informationprovidedbythecompanyorothersinaccordancewith the Agreement. The Consultant does not warrant or guarantee, through the Services, this report or otherwise, any geological or commercialoutcome. Thisreportrelatesspecificallyandsolelytothesubjectassetsandis conditional upon various assumptions that are described herein. Thereport,ofwhichthisletterformspart,mustthereforeberead in its entirety. Except with permission from RPS, this report may only be used in accordance with the Agreement. It must not be reproduced or redistributed, in whole or in part, to any other person than the addressees or published, in whole or in part, for anypurposewithouttheexpresswrittenconsentofrps." A glossary of technical terms used by RPS in their CPRs is set out below: Glossary MMstb Mstb oil-in-place million stock tank barrels of oil thousand stock tank barrels of oil the volume of oil estimated to have been initially in place P90 There is estimated to be at least a 90% probability (P90) that the quantities in place equal or exceed this low estimate P50 There is estimated to be at least a 50% probability (P50) that the quantities in place equal or exceed this best estimate P10 There is estimated to be at least a 10% probability (P10) that the quantities in place equal or exceed this high estimate 1C The low estimate of Contingent Resources. There is estimated to be a 90% probability that the quantities actuallyrecoveredcouldequalorexceedthisestimate

8 2C The best estimate of Contingent Resources. There is estimated to be a 50% probability that the quantities actuallyrecoveredcouldequalorexceedthisestimate 3C The high estimate of Contingent Resources. There is estimated to be a 10% probability that the quantities actuallyrecoveredcouldequalorexceedthisestimate 1P The low estimate of Reserves (proved). There is estimated to be a 90% probability that the quantities remaining to be recovered will equal or exceed this estimate 2P The best estimate of Reserves (proved + probable). There is estimated to be a 50% probability that the quantities remaining to be recovered will equal or exceedthisestimate 3P The high estimate of Reserves (proved + probable + possible).thereisestimatedtobea10%probabilitythat the quantities remaining to be recovered will equal or exceedthisestimate ENDs This information is provided by RNS The company news service from the London Stock Exchange END