UK Oil & Gas PLC

("UKOG" or the "Company")

Environment Agency grants full Horse Hill Production Permit

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that the Environment Agency ("EA") has granted UKOG's 85.635% owned Horse Hill oil field a full Production Permit ("PP"). The  PP enables production and water re-injection operations, incineration of waste gas, maintenance/workovers and the drilling of further development wells. To date, production at Horse Hill has operated under the umbrella of prior testing consents which excluded any ability to reinject produced saline formation water.

UKOG can now proceed ahead with its plans to convert Horse Hill-2z into a water injector during 2022, which, if implemented, would remove the need for costly transportation and disposal of produced saline formation water at remote third-party sites. The initial application for the PP was submitted to the EA 31 months ago on 24 September 2019. 

Following the PP grant a review of the viability of reinstating Kimmeridge production and further new Portland infill drilling locations are now under way.

Stephen Sanderson UKOG's CEO commented:

"This long-awaited EA permit finally enables UKOG to return Horse Hill's produced saline formation water back to the oil-bearing Portland rocks where it originated, lowering operating costs per barrel, removing HGV tankers from congested roads and reducing the field's overall carbon footprint. The ability to reinject makes both environmental and economic good sense."

Qualified Person's Statement

Matt Cartwright, UKOG's Commercial Director, who has 39 years of relevant experience in the global oil industry, has approved the information contained in this announcement. Mr Cartwright is a Chartered Engineer and member of the Society of Petroleum Engineers.

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The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the “UK MAR”) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company’s obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.