 share price has rallied today after finding support near the 50-day moving average yesterday.){kind=link}
UK Oil & Gas plc’s (LON:UKOG) share price has rallied today after finding support near the 50-day moving average yesterday.
UKOG owns a 49.9 percent interest in the Horse Hill oilfield in Southern England known as the ‘Gatwick Gusher’ – where it is thought 100 billion barrels of oil sit in the Weald Basin – and is currently pursuing flow tests in the prospect.
Planning permission
Today’s rise comes days after UKOG were granted a one-year extension to planning permission for the BB-1and 1z wells by West Sussex County Council Planning Committee. The BB-1 and 1z wells sit in the Broadford Bridge prospect adjacent to Horse Hill.
UKOG are hoping to further test flow rates in Broadford Bridge and add to the stable 1,365 barrels per day achieved in 2016 in the Horse Hill project.
CEO Stephen Sanderson said of the recent planning permission extension:
“West Sussex’s unanimous approval of the extension is further recognition of the Company’s operational competence, sound environmental practices and positive engagement with all stakeholders. I look forward to a successful flow test outcome.”
The company has also noted the oil in place is a light oil which could be present throughout the entire structure.
Bullish momentum
UKOG (LON:UKOG) hit an intra-day high of 11p 26th July 2017 and has since remained above the 50-day moving average suggesting a bullish bias to the current share price.
The 50-day moving average currently sits at 6.98p having moved above the 200-day moving average 11th July to form a ‘golden cross’ technical formation.
Investors will await further updates on the flow tests from the company and the timing of this announcement could be crucial to the short-term price action.
In the company’s update on 13th September the market was told UKOG would update the market ‘in due course’, an ambiguous timeframe which leaves a degree of uncertainty on the timing of the next update.