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Impact of Kimmeridge Limestone Oil on UK Economy
Impact of Kimmeridge Limestone Oil on UK Economy.
About this update from Uk Oil & Gas Plc
[{"type":"text","content":"\n \nRNS Number : 4442V UK Oil & Gas Investments PLC 18 April 2016 \n\nUK Oil & Gas Investments PLC\n(\"UKOG\" or the \"Company\")\nImpact of Kimmeridge Limestone Oil on UK Economy: EY Report (\"the Report\")\n \nUK Oil & Gas Investments PLC (London AIM and ISDX: UKOG) has today released a commissioned Report, authored by EY, a global leader in assurance, tax, transaction and advisory services, which assesses the economic impact and benefits of future Kimmeridge Limestone oil production projects over the Weald Basin. The Report highlights the significant positive contribution to the UK economy, jobs and energy security that could result from this new potential oil production. EY's analysis builds on the recent highly successful oil flow tests from the Kimmeridge Limestones at the Horse Hill-1 (\"HH-1\") oil discovery, in which the Company has a 27.3% interest. \nIt should be noted that the Report is solely in relation to the potential extraction of oil from the two main Kimmeridge Limestones over the entire Weald Basin and is not an assessment of the Company's own 11 individual licence interests in the Weald.\nKimmeridge Limestone Oil - Economic Impact Highlights:\n· Future peak oil production could provide approximately 4% to 27% of 2014 UK daily oil demand over the life of the project\n· The Gross Value Added to the UK economy could range from £7.1 billion to £52.6 billion\n· Generation of between approximately 1,000 to 5,600 jobs in the UK, averaged over the project's lifetime\n· Lifetime tax revenues of between £2.1 billion to £18.1 billion\nThe Report:\nOver the past decade, North Sea production has declined to the point where the UK is forecast to import over 50% of its daily oil demand by 2020. In this context, and following the HH-1 flow tests, EY have now produced a detailed analysis of how the extraction of oil from the Kimmeridge Limestones in the Weald could help arrest the decline of indigenous oil production and strengthen the UK's long-term energy security.\n \nEY's economic impact forecasts utilised the Company's internal assumptions on production rates for a multiple horizontal well production site, together with Xodus Group's conceptual multi-well site development study and Nutech's calcul...