Business
Horse Hill & Loxley Update - Notice of GM
Horse Hill & Loxley Update - Notice of GM.
About this update from Uk Oil & Gas Plc
[{"type":"text","content":"\n \nRNS Number : 0589B UK Oil & Gas PLC 28 January 2020 \n\nUK Oil & Gas PLC\n(\"UKOG\" or the \"Company\")\n \nHorse Hill Oil Field Update, PEDL234 Loxley Update and General Meeting Notice \n \nHorse Hill Oil Field EWT and Field Development Update (UKOG 85.635% interest)\n \nUK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that as a result of a successful reservoir pressure \"interference\" testing campaign, undertaken to assess the degree of communication between Horse Hill-1 (\"HH-1\") and the new HH-2z horizontal, the Company now intends to accelerate the start of up to 25 years of continuous long-term production (\"Production\") by 6 months. Production is now planned to commence by bringing HH-1 into Production during Spring 2020 and to be followed by HH-2z upon completion of the current extended well test (\"EWT\").\n \nFollowing recent discussions with the Oil and Gas Authority (\"OGA\"), a revised Horse Hill Field Development Plan (\"FDP\") has been submitted which, subject to OGA's final consent, will see the field's overall Production volumes grow in two initial phases compared to the single phase of the original FDP. It is planned to convert HH-2z from its current EWT status to Production in 3rd quarter 2020. \n \nNecessary additional surface facilities, including generators to produce electric power from associated gas, will be installed prior to Production start. Further possible infill wells, water injection and additional gas utilisation will be addressed via subsequent FDP addenda and submitted to the OGA for consent at the appropriate time.\n \nThe establishment of Production at Horse Hill is a significant and key milestone for the Company as it will enable recoverable Reserves to be allocated to the project. This is a key first step to help access debt-based funding, which, if secured, would help meet the cost of current and future projects designed to grow the Company's asset base. Production will also enable oil sales to be booked directly as income, rather than simply netting off the revenues against EWT costs. \n \nFurther to the Company's announcement of 23 December 2019, the planned routine intervention to shut-off water ingress into the HH-2z horizontal is now scheduled for February. Whilst the Company wished to act more rap...