AIM-listed firm UK Oil and Gas Investments saw its operating loss narrow 18.9% to £2.39m in 2017, thanks to lower consultant and administrative costs, but its overall loss for the year of £2.27m was 14% wider as a result of a £1.03m credit to its income statement.
In terms of operations, oil flowed continuously on pump from UKOG's Kimmeridge Limestone test zone, together with the recovery of oil and gas to surface from multiple flow tests, at the group's "most extensive testing ever of an onshore exploration well", which conducted over a thousand feet of perforations.
UKOG's oil discovery provided it with "proof of concept" for Kimmeridge's continuous oil deposit and provided it with further evidence to support a regionally extensive natural-fracture network capable of delivering oil to surface from KL without reservoir stimulation.
Over at its Horse Hill asset, operated by Horse Hill Developments, drilling programmes for the coming year were aimed at delivering conventional oil production from the Portland site after a new study revealed a total of 32m barrels of oil in place, a 53% increase on its previous resource estimate.
UKOG chairman and chief executive, Stephen Sanderson, said, "2017 has been a transformational year for UKOG. We have continued to build a spread of investments, focused on UK onshore oil assets centred upon our exciting and industry-leading position in the Weald Basin's Kimmeridge Limestone oil play."
"These investments are underpinned by further discovered oil resources outside the KL play contained within five low-risk undeveloped oil and gas discoveries, which alone contain recoverable resources of over 14 million barrels net to the company," he added.
During the financial year, UKOG raised gross proceeds of £7.46m via the issue of equity which, in addition to £2.44m in cash holdings, was used to fund £8.72m of investments made into further exploration and evaluation.
As of 31 December, UKOG had 31.2% less cash and cash equivalents at £1.74m and total liabilities of £4.08m, 149.4% increase.
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