As the perfect antidote to Naomi Klein’s This Changes Everything I offer you the superb work by the American author Alex Epstein called The Moral Case for Fossil Fuels. In this talk Alex outlines his thesis in considerable detail.

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The influential Canadian author Naomi Klein has an interesting new book out which I recommend to my readers. In This Changes Everything Klein synthesises her anti-globalisation political doctrine with climate change in order to produce a blueprint of a society quite alien to that which we are accustomed in the UK. Read Klein to see the direction which the Climate debate might take over the coming years. That the first and third parts of her book are based upon many faulty premises shouldn’t surprise us. What is surprising are some of the drastic remedies which Klein openly proposes, such as a 3 day working week and the further levelling down of wages across the developed world. I don’t think I have read a book in recent years with which I have at once disagreed (most of parts one and three) and yet agreed (much of part two, in particular chapters 7 and 8).

Significant upgrade of the Horse Hill discovery, UK Weald Basin

RNS Number : 6742J
UK Oil & Gas Investments PLC
09 April 2015

9 April 2015

UK Oil & Gas Investments PLC

(“UKOG” or the “Company”)

Significant upgrade of the Horse Hill discovery, UK Weald Basin

London quoted UK Oil & Gas Investments PLC (LSE AIM: UKOG) is pleased to announce that US-based Nutech Ltd (“Nutech”), one of the world’s leading companies in petrophysical analysis and reservoir intelligence, estimate that the Horse Hill-1 (“HH-1”) well in the Weald Basin has a total oil in place (“OIP”) of 158 million barrels (“MMBO”) per square mile, excluding the previously reported Upper Portland Sandstone oil discovery.

The Horse Hill licences cover 55 square miles of the Weald Basin in southern England in which the Company has a 20.36% interest.

Nutech’s report to the Company states this OIP lies within a 653 feet aggregate net pay section, primarily within three argillaceous limestones and interbedded mudstones of the Kimmeridge, and the mudstones of the Oxford and Lias sections. Approximately 72% of OIP, or 114 MMBO, lies within the Upper Jurassic Kimmeridge interbedded limestone and mudstone sequence. The Executive Summary of the Nutech Report is appended in full at the end of this release and the full executive report with figures will be available on the Company’s website at www.ukogplc.com.

In order to establish estimates of total OIP within the licence area, the semi-regional resource potential of the Weald Basin’s eastern footprint is the subject of ongoing analysis under the contracted alliance between Nutech, UKOG and Solo Oil Plc. The results of the estimated OIP within the licence will be reported when completed.

Final assessments of the Upper Portland Sandstone and the Oxford and Lias sections are in progress, with further results expected shortly.

Stephen Sanderson, UKOG’s CEO, commented:

“Drilling the deepest well in the basin in 30 years, together with the ability to use concepts, techniques and technology unavailable in the 1980s, has provided new cutting-edge data and interpretations to comprehensively change the understanding of the area’s potential oil resources.”

“As a result, we believe that, in addition to the Portland Sandstone oil discovery, the Horse Hill well has discovered a possible world class potential resource in what is interpreted to be a new Upper Jurassic “hybrid play”.

“With the help of Nutech’s considerable global knowledge base and play library, we have identified that the Horse Hill Upper Jurassic rock sequence is analogous to known oil productive hybrid reservoir sections of the Bakken of the US Williston Basin, the Wolfcamp, Bone Springs, Clearfork, Spraberry, and Dean Formations in the US Permian Basin and the Bazhenov Formation of West Siberia.”

“The US analogues have estimated recovery factors of between 3% and 15% of Oil in Place.”

“The Company considers that the high pay thickness, combined with interpreted naturally fractured limestone reservoir with measurable matrix permeability, gives strong encouragement that these reservoirs can be successfully produced using conventional horizontal drilling and completion techniques.”

 “Nutech’s results combined with our extensive geochemical analyses strongly indicates that the Company’s Horse Hill licences lie within the likely sweet spot of the identified “Weald hybrid play”.”

“Appraisal drilling and well testing will be required to prove its commerciality, but this “Weald hybrid play” has the potential for significant daily oil production.”

“The operator, Horse Hill Developments Ltd, with the assistance of Nutech, is now focussed on flow testing the Portland Sandstone and Kimmeridge Limestone sections of the well, to establish producibility and thereby seeking to quantify an overall net discovered resource”.

UKOG’s interest in Horse Hill:

The Horse Hill-1 well is located within onshore exploration License PEDL 137, on the northern side of the Weald Basin near Gatwick Airport.  UKOG owns a 30% direct interest in Horse Hill Developments Ltd (“HHDL”) and a 1.32% interest in HHDL via its 6% interest in Angus Energy Limited. HHDL is a special purpose company that owns a 65% participating interest and operatorship of Licence PEDL 137 and the adjacent Licence PEDL 246 in the UK Weald Basin.

Qualified Person’s Statement: Stephen Sanderson, UKOG’s CEO, who has over 30 years of relevant experience in the oil industry, has approved the information contained in this announcement.  Mr Sanderson is a Fellow of the Geological Society of London and is an active member of the American Association of Petroleum Geologists.

The oil in place hydrocarbon volumes estimated should not be considered as either contingent or prospective resources or reserves.

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