UK Oil & Gas share price hits all-time record high

Shares in UK Oil & Gas PLC (UKOG:LON) jumped over 20 percent on Wednesday afternoon, as a strong rally continues following an update on operations last week.

UK Oil & Gas (UKOG:LON) rose above 4p on Tuesday to hit an all-time intraday record high. UKOG has rallied over 350 percent in the past month.

The rally today has not been accompanied by a release from the company.

Oil and Gas Authority approval

The Oil and Gas Authority has approved the final flow test at UKOG’s 100 percent owned Broadford Bridge well which has previously indicated oil-filled formations of 1100 feet.

Success in Broadford Bridge near Billinghurst, West Sussex would be a welcome addition to the significant find at Horse Hill near Gatwick Airport. Both the Broadford Bridge well and Horse Hill are located in the Weald Basin in South East England.

UKOG’s Executive Chairman commented on the update:

“In the Company’s view, these highly positive and ground-breaking drilling results support our concept that a continuous oil deposit, some 1100 feet vertical thickness, underlies the BB-1 well location and the wider Weald Basin. UKOG as the largest licence holder in the prospective area of the Kimmeridge oil deposit is ideally positioned to take full advantage of this position.

“Given our 100 percent ownership of BB-1 and the 300 km² size of the PEDL234 licence, this licence now looks set to supplant Horse Hill as the Company’s flagship asset.

“The major technical learning from BB-1 to date is that the Kimmeridge oil deposit now spans both fractured limestones and shales over almost the entire Kimmeridge section and that natural fracturing is more pervasive than expected. This bodes very well for the forthcoming flow test programme, which will commence following electric logging and well completion.

“The forthcoming extensive flow testing phase will now hopefully move us even further from proof of geological concept towards demonstrating that BB-1 itself is commercially viable.”