Further to the analysis of the Third Quarter 2022 Phase 2 Seismic Programme UK Oil & Gas PLC announced that the Resan JV (UKOG 50% working interest) has identified and plans to drill in First Quarter 2023, a new potential shallow oil accumulation, Pinarova, of some 9 km² areal extent, located 6 km north of the Basur-1 oil discovery. The new Pinarova-1 well is designed to test a working hypothesis, supported by well and seismic data, that the active (41.7°API) light oil seep found last summer in a seismic shot hole above the Pinarova structure, is directly fed by and connected to an underlying light oil accumulation within Eocene Hoya group limestones, 300-645m below surface. The presence of movable oil within Pinarova is indicated by results of the 2018 Kezer-1 shallow geothermal well, located near the apex of the Pinarova geological feature.

Kezer-1 reported strong oil shows throughout the Hoya and flowed heavily oil-cut fluids to surface on a short open-hole geothermal test. Kezer-1 was deemed unsuitable for geothermal purposes and abandoned. Both new and legacy seismic data also show a series of vertically stacked seismic amplitude anomalies within the core of Pinarova's Hoya structure, possibly directly indicating hydrocarbons and/or the development of good reservoir within the Hoya.

The Company and its joint partner Aladdin Middle East ("AME") consider Pinarova to offer similar potential success case outcomes to a Basur-4 appraisal well, but at a much lower drilling cost (c. $0.66 million gross versus c. $4.12 million gross) and with a shorter time to execution and delivery. Pinarova-1 will, therefore, be designed to test if light oil is present in commercially viable saturations and quantities within the Hoya and, if successful, will be completed as a pumped oil production well. If successful, Pinarova-1 would likely be followed by a Pinarova-2 well and/or a Basur-4 appraisal well drilled from a new site west of Basur-1. Analysis of the new Phase 2 seismic data also supports the directors' belief that the Basur structure extends more westwards than first mapped and can now be better appraised from a newly identified site, 1 km west of the Basur-1 oil discovery.

The new site will enable the core of the Basur discovery to be reached and appraised with reduced horizontal deviation than from the Basur-3 site, and without the need to drill through the major NW-SE thrust fault zone immediately to the south. The new location thus removes the potential lost circulation, stuck pipe and significant cost overrun risks associated with drilling through the heavily fractured limestones within the thrust-fault zone. The new site will, however, require a new pad and longer access track to be constructed.