UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that it has signed a binding heads of agreement with Aladdin Middle East Ltd ("AME"), an independent oil company with 60 years of operational experience in Turkey, to take a 50% non-operated working interest in the 305 km Resan Licence ("Licence"). UKOG will take an active technical role in a 5-well oil appraisal and step-out exploration drilling programme, which, Covid and weather permitting, is expected to commence this year.
The Licence lies within the SE Anatolian basin, a geological continuation of the prolific Zagros "fold-belt" petroleum system within the foothills of the Taurus-Zagros mountains in Iraq, Iran and Turkey, one of the Middle East's major oil producing areas. Multiple producing oil fields lie to the immediate west and south east of the Licence, containing significant proven recoverable reserves.
The first commitment well, currently planned to appraise and flow test the Basur oil discovery, must commence drilling before 27 June 2021. Drilling and seismic are therefore expected to commence before the end of this year, Covid, weather and Turkish governmental transaction approval permitting.
Given the relatively modest well costs, it is expected that a near continuous drilling campaign could be undertaken to ensure the Licence is fully evaluated and that oil recovered to surface can be monetised as rapidly as possible.
Stephen Sanderson, UKOG's Chief Executive, commented: "Whilst we remain committed to growing our core UK business, this was an irresistible opportunity to expand our horizons and to expose the company to potentially transformational recoverable oil reserves that can be rapidly monetised".
Source: UKOG
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