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BREAKING: UK Oil & Gas slammed for lying by top expert,says will have to frack: calls for cancellation of permit

By Tom Winnifrith, The Sheriff of AIM | Friday 11 August 2017

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

UK Oil & Gas and its partners in Kimmeridge Oil & Gas have sought an amendment to their permit from West Sussex County Council to allow a continuation of drilling at Broadford Bridge. Top geologist, David K. Smythe, Emeritus Professor of Geophysics, University of Glasgow has submitted a detailed application which slams UK Oil & gas for, inter alia, lying about what it was doing and claims that it will have to frack to have any hope of making this operational commercial. On that basis he asks , in a detailed and damning submission, that drilling be halted at once. We have the full report below and it appears damning. The highly regarded professor states:

Kimmeridge Oil & Gas Limited holds the PEDL234 licence inherited from Celtique Energie Weald Limited in 2016. The Applicant claims that it also thereby inherited permission to drill and test its Broadford Bridge-1 well, and is now seeking an extension for a further year of exploration.

This response demonstrates that the Applicant has materially breached the terms of the planning permit originally granted to Celtique Energie. Therefore the current permit should be declared void. A new planning application should be submitted to West Sussex County Council; alternatively the Applicant should surrender the licence.

The Applicant further asserts that the drilling operation is conventional in nature. Although Celtique Energie's approved target was conventional (a Triassic sandstone trap mapped below the wellsite), the Applicant's target of low permeability ('tight') Kimmeridgian shales and limestones is clearly unconventional. There is no defined trap (another criterion for defining a conventional hydrocarbon resource), and any resulting large-scale oil production would require fracking. Oil-mature Kimmeridgian shales are only found further north within the PEDL area, meaning that the current well is situated at an unsound location for the purpose.

The Applicant's claim that so-called 'mobile light oil' in the Kimmeridgian underlies a large area of the Weald, based on its flow testing results from Broadford Bridge-1, its new sidetrack Broadford Bridge-1z, and Horse Hill-1 near Gatwick, is both absurd and disingenuous. The Kimmeridgian of the Weald does indeed possess 'light tight oil' (LTO) - a fact known for 30 years or more. But the Applicant appears to have chosen highly unusual localities for its drilling, that is, within fault zones.

You can read the report in full HERE and all shareholders in UK Oil & Gas should do so as a matter of urgency.

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