Uk Oil & Gas Plc · LSE:UKOG
Uk Oil & Gas — Investor Presentation (November 2018)
26 slides from Uk Oil & Gas's investor presentation, November 2018
Slide 1: Horse Hill and Beyond Corporate Presentation
HORSE HILL AND BEYOND CORPORATE PRESENTATION N ov e m b e r 2 0 18 1
Slide 2: Disclaimer
Disclaimer This presentation and any additional documents handed out at any meeting (together the “Presentation Materials”) have not been approved by (i) the London Stock Exchange plc or by any authority which could be a competent authority for the purposes of the Prospectus Directive (Directive 200
Slide 3: Disclaimer (cont.)
Disclaimer (cont.) Neither the Company, nor its advisers accept liability whatsoever for any loss howsoever arising, directly or indirectly, from use of these Presentation Materials or their contents or otherwise arising in connection therewith. The Company, in its sole discretion, reserves the righ
Slide 4: Introduction
Introduction • Largest acreage holder in south east UK STRATEGIC POSITION IN UK • Leader in Kimmeridge Limestone oil play ONSHORE OIL & GAS • Diversified across traditional and naturally fractured reservoirs CLEAR PATHWAY TO FULL SCALE • Horse Hill commercially viable • Horse Hill production wells i
Slide 5: Strategic UK Onshore Position: Largest Acreage Holder in SE UK
Strategic UK Onshore Position: Largest Acreage Holder in SE UK (c. 800km 2) 5
Slide 6: Portfolio: Multiple High Impact Projects
Portfolio: Multiple High Impact Projects 6
Slide 7: Horse Hill 2018 and Beyond
Horse Hill 2018 and Beyond 7
Slide 8: Horse Hill Extended Well Tests 2018
Horse Hill Extended Well Tests 2018 Summary Flow Test Results Portland KL 3 KL4 Maximum metered rate 470 bopd * 902 bopd ** To be tested Calculated future optimised rate 362 bopd * n/a To be tested Sustained average daily rates 220-240 bopd * 342 bopd * ** To be tested Total test production (14/11/2
Slide 9: Horse Hill-1 Extended Well Test Configuration
Horse Hill -1 Extended Well Test Configuration Tested interval • Portland 113 ft • KL3 83 ft @ 43° • KL4 86 ft @ 45° 9
Slide 10: Horse Hill Development Forward Programme
Horse Hill Development Forward Programme • Well test programme to date delivered proof of commercial viability on time and on budget • Long-term production start target late 2019 / early 2020 • Each production well targeting between 750 bopd – 1,000 bopd Overview of Key 2018 2019 2020 Milestones Q1
Slide 11: Horse Hill-2 Horizontal Production Well
Horse Hill-2 Horizontal Production Well • Scheduled to be first well into long term production • Well scheduled Q2- Q3/2019 • Testing Q3 2019 • Permits in place • Completed as a horizontal production well • Possible use of Fishbones completion to further increase rate • Production Target: 750- 1000
Slide 12: Horse Hill - Kimmeridge & Portland Oil Pools
Horse Hill - Kimmeridge & Portland Oil Pools Three productive and commercially viable oil pools • Portland, KL3 & KL4 • KL0, KL1, KL2 & KL5 untested to date 12
Slide 13: Kimmeridge – World Class Oil Source Rock
Kimmeridge – World Class Oil Source Rock 13
Slide 14: Kimmeridge – Extensive & Naturally Fractured
Kimmeridge – Extensive & Naturally Fractured • Kimmeridge Shale is the major source of North Sea oil • Natural fractures within the Kimmeridge Limestones • Kimmeridge Limestones are regionally extensive 14
Slide 15: Kimmeridge Development Concept: Possible Scale and Assumptions
Kimmeridge Development Concept: Possible Scale and Assumptions • Multiple wells in ~2 ha sites • Target Initial rate 1000 bopd per horizontal well • Target recovery 1 MMbbl/well • Production costs estimated @ ~ £17/bbl or $21/bbl • Horizontals and/or slant wells • Multiple completions and co-mingled
Slide 16: Kimmeridge Development Concept: Low Impact
Kimmeridge Development Concept: Low Impact • Multiple wells in ~2 ha sites • 4-8 sites per 100 km² • Wells and pumps below ground level • Low-rise storage tanks • Mitigate impact by seeking brownfield site and / or locations near A-roads / rail-links 16
Slide 17: High Impact Future Projects: Significant Upside
High Impact Future Projects: Significant Upside 17
Slide 18: Arreton Oil Discovery: N. Sea Size Oil Pool + Upside
Arreton Oil Discovery: N. Sea Size Oil Pool + Upside Arreton Main Conventional Oil Discovery Four times HH-1 Portland Oil in Place Analogue to HH-1 Portland discovery • Same size as typical current North Sea Arreton Main field/prospect opportunities • 127 million bbl Oil in Place* • 10 million bbl 2
Slide 19: Godley Bridge: N. Sea Size Gas Discovery
Godley Bridge: N. Sea Size Gas Discovery Godley Bridge PEDL234 N. Sea Size Gas Discovery plus Underlying Kimmeridge Upside Portland • Portland gas appraisal project • Gross 56 Bcf Portland gas in place* Godley Bridge Gas Discovery • Estimated recovery factor 60-80% Kimmeridge • Largest undrilled KL
Slide 20: 2019 – 2020 Operated Assets Programme
2019 – 2020 Operated Assets Programme 2019 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Production & Development Horse Hill Portland & KL Test Prod. Drilling Test Prod. Facilities Long Term Production/ Further Production Wells Appraisal Arreton Main Drilling Test Production Godley Bridge Drilling Test Production Br
Slide 21: Directors & Management Team
Directors & Management Team Allen D Howard Allen Howard is President & CEO of Houston-based Apex Completions, having previously been Senior Vice President of Houston-based Non-Executive Chairman Premier Oilfield Laboratories. Mr Howard also held senior positions with Schlumberger and Nutech. He hold
Slide 22: UKOG: The A Team
UKOG: The A Team 22
Slide 23: Appendices
Appendices 23
Slide 24: 2018 KL3 & KL4 Test Downhole Completion
2018 KL3 & KL4 Test Downhole Completion Completion model to scale: sliding sleeve (red) and production packer (grey). The model shows the actual 45° inclination of the HH-1 well within the KL3 and KL4. 24
Slide 25: UK Daily Oil Consumption
UK Daily Oil Consumption Britain consumes ~1.4 million barrels per day Chemicals, plastics, etc • 70% of it is used as fuel Residential for transport. • 30% of it is used as Commercial petrochemical feedstock Land, sea, air Others • None of is used for transportation electricity generation 25
Slide 26: UK Oil Import Dependency Set to Increase
UK Oil Import Dependency Set to Increase 2016 (BOPD) 2030 (BOPD) Onshore ~20,000 Onshore ~19,000 Imports 36% North Sea North Sea 65% ~800,000 Imports Net oil import dependency Net oil import dependency 36% 65% 26