UK Oil & Gas announces that operations to shut off formation water ingress into its Horse Hill-2z ("HH-2z") horizontal production well have commenced. By means of a Halliburton coiled tubing unit, production logging tools will be run along the entire length of the 2,500 ft horizontal section to identify the source of water ingress, thought to be from a series of open natural fractures at the base or "toe" of the wellbore.

Once identified, the source of water ingress will be isolated, either via a rigid setting fluid plug, or by a conventional cementing and selective perforation programme. A resumption of HH-2z extended well test operations is planned to follow directly after a successful intervention. Portland oil pool test production from HH-1 will continue during the intervention.

UKOG holds a controlling 85.635% interest in the Horse Hill oil field and surrounding highly prospective PEDL137 and PEDL246 licences, which are operated by UKOG's subsidiary company, Horse Hill Developments Ltd.

Stephen Sanderson, UKOG's Chief Executive, commented:
"We look forward to a successful intervention programme and the near-term resumption of test oil production from the new HH-2z horizontal well."

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