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UK Oil & Gas to provide update on Horse Hill extension in due course

LONDON (ShareCast) - In reaction to recent comments in the press UK Oil & Gas (Berlin: 0UK.BE - news) confirmed it owns 20.358 % of the two Horse Hill exploration licences and that it will update the market in due course on its application to extend the exploration period granted under one of these, PEDL137. The PEDL137 licence expires on 30 September 2015 but Horse Hill Developments Limited (HHDL) - the operator of the licence - has already applied to the Oil & Gas Authority for a one year extension on the exploration period. The company will provide an update on that licence extension in due course.

The other licence, PEDL246, expires on 30 June 2019 Furthermore, Oil & Gas Authority has been informed by the PEDL137 operator, HHDL, that it intends to conduct a flow test on the Horse Hill-1 well later in 2015 . Planning approval from Surrey County already exists.

Horse Hill-1 is located on the northern side of the Weald Basin, near Gatwick Airport. On 9 April the outfit estimated the well contained a total of 158m barrels of oil in place, which was hailed by the markets as a potential significant discovery, with the story making the front pages of some of the main newspapers.

In a research report issued to clients following the announcement WH Ireland (LSE: WHI.L - news) said: "Today's update is highly encouraging and for the first time provides us with volumetric potential [...] and look forward to the final evaluation of oil in place volumes at HH-1, which we believe should be announced during the course of this month." Subject to the results of the flow-test being successful, the operator would seek, in conjunction with the OGA and other regulators, to move the PEDL137 licence into the Production Period, via submission of a Field Development Plan to OGA.

UKOG owns a 30% direct interest in Horse Hill Developments and a 1.32% interest in HHDL via its 6% interest in Angus Energy Limited.