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Xodus Assessment of Arreton-2 Oil Discovery
Xodus Assessment of Arreton-2 Oil Discovery.
About this update from Uk Oil & Gas Plc
[{"type":"text","content":"\n \nRNS Number : 2346N UK Oil & Gas Investments PLC 28 January 2016 \n\n28 January 2016\nUK Oil & Gas Investments PLC\n(\"UKOG\" or the \"Company\")\n \nArreton-2 Oil Discovery, PEDL331 Onshore Isle of Wight, UK\nXodus Assessment of Oil in Place and Recoverable Resources\n \nUK Oil & Gas Investments PLC (LSE AIM/ISDX:UKOG) announces that a volumetric analysis carried out by Xodus Group Ltd (\"Xodus\") calculates that the historic Arreton-2 well, now interpreted to be an undeveloped oil discovery (\"Arreton Main\"), and the adjacent low-risk Arreton North and South Prospects (\"Arreton Prospects\") contain an aggregate gross Best Estimate (\"P50\") Oil in Place (\"OIP\") of 219 million barrels (\"MMbbl\") within Purbeck, Portland and Inferior Oolite limestone reservoirs. The Arreton Main discovery and Arreton Prospects lie within a 200 square km 14th Round licence (\"Licence\") offered to the Company by the Oil and Gas Authority (\"OGA\"), in which the Company has a 65% working interest.\n \nOIP is the total estimated quantity of oil in the ground before any extraction or production and is not to be construed as Recoverable Resources or Reserves.\n \nThe Executive Summary of the report detailing Xodus' analysis is available on the Company's website http://www.ukogplc.com/page.php?pID=110\n \nArreton-2 well\nThe Arreton-2 well, drilled in 1974 by British Gas, penetrated the large Arreton Main anticlinal structure and unexpectedly found strong oil shows in the Upper Jurassic Portland, and Inferior Oolite reservoir sections, although well testing was not successful at the time. A recent petrophysical analysis of the Arreton-2 electric logs by Nutech Energy Alliance (\"Nutech\") has calculated a total oil pay of 78 feet within the Portland section, and suggests that this well can be regarded as an oil discovery based on analogous reservoirs which are known to be productive. A further 127 feet of total oil pay is also calculated in limestones within the underlying Oolite reservoir formations.\n \nSummary of Recoverable Oil Resources\nXodus estimate that the Arreton Main structure contains aggregate P50 Net recoverable volume of 10.2 million barrels (\"MMbbl\"), and state that these volumes can be classified as \"Contingent Resources\" under PRMS reporting standards. Th...