UK Oil & Gas plc (UKOG) aims to start drilling in early 2021 at the 305 km² Turkish Resan licence in which it has a 50% interest.
The hydrocarbon exploration and development company executed the farm-in participation agreement last Wednesday (4 October) with Aladdin Middle East Ltd (AME) for its share in the project.
UKOG raised £2.2 million at the start of October to fund its part of initial drilling and seismic costs for the project.
The company hopes that the first oil appraisal well, currently planned as Basur-3, will be drilled in early 2021.
| Total Resan Licence (mmbbl)¹ | Low Case (P90) | Mid Case (P50) | Mean Case(average) | High Case (P10) |
| Gross recoverable | 18.9 | 39.2 | 43.4 | 84 ² |
| UKOG net recoverable (50% WI) | 9.45 | 19.6 | 21.7 | 42 ² |
| Gross oil in place | 142 | 275 | 321 | 607 |
UKOG said that Xodus Group Ltd’s report on the licence calculated that the licence contained “materially significant recoverable discovered and undiscovered prospective resource volumes, with calculated aggregate mean and high gross cases of 43.4 million barrels (UKOG net 21.7mmbbl) and 84 mmbbl (UKOG net 42 mmbbl) respectively.”
GROWTH
Chief executive Stephen Sanderson said he looked forward to the imminent start of preparations to drill the first Basur-Resan appraisal well and to a long and successful relationship with AME.
“When compared to our material Loxley and Arreton appraisal projects, Resan offers even greater upside for similar risk, significantly lower operational costs and, more critically, given success, a far quicker route to production and cash flow.
“Resan is therefore a compelling and material growth opportunity that could provide potentially transformational reserves growth in the short term. It is a valuable addition to UKOG’s portfolio.”
UKOG’s other interests are in two onshore oil-producing fields, which generate cash for UKOG, four appraisal/development licences (two with additional exploration potential) and three exploration licences.
The company’s assets are primarily in the Weald Basin, in southern England and include Avington PEDLLO70, Broadford Bridge, Loxley/Godley Bridge PEDL234, Baxters Copse PEDL233, A24 (PEDL143), Horndean (PL211), Isle of Wight Onshore (PEDL331), and Markwells Wood (PEDL126), and its flagship site Horse Hill PEDL137/246.