UK Oil & Gas PLC provided the following operational update for its 85.635% owned Horse Hill oil field. To date, the field has produced and exported over 132,000 barrels (bbl) of Brent quality crude from its Kimmeridge and Portland oil pools. Despite the planned October and November downtime for the Horse Hill-1 intervention, the total Portland oil production for the first quarter of UKOG's 2020/21 financial year to December 2020 was 7,045 bbl. The average production uptime was 57% over the period and ranged from 37% during October's main HH-1 intervention period, to 85% in November, post-intervention. Formation water production and an associated drop in overall oil production is entirely normal in conventional oil fields, and its management, necessary to optimise net revenue, is routine oil field practice. For this reason, Horse Hill's planning consent included a provision for a formation water reinjection well. Consequently, to remove the need for expensive off-site water disposal via tanker and to also help maximise oil recovery by supporting reservoir pressure, HH-2z will now be reconfigured, subject to regulatory consent, into a water re-injection well as soon as practicable. Additional, optimally sited, production infill wells are planned to replace HH-2z as per the original field development plan. The necessary regulatory consent process for water injection is underway, with permissions currently expected in the second calendar quarter, subject to any pandemic related delays. Until such permissions are in place, it is planned to manage pumping and resultant oil production to maintain water cut at, or, hopefully, below the current level. The recent integration of the November pressure build-up data, HH-2z rock data, and a completely revised seismic interpretation has also provided a far better understanding of the Portland reservoir. Several significant infill drilling opportunities have now been identified in the Portland oil pool, all up-dip of HH-1 (i.e., at a shallower depth within the oil pool) and significantly above the oil-water contact. Following the successful flow testing of the Kimmeridge oil pool, during which 52,780 bbl of 40° API oil were produced, further development of the Kimmeridge oil pool also remains a significant objective for the Company. Consequently, plans have now been made for an infill well to determine the lateral extent of the Kimmeridge oil pool, proven by HH-1 to lie within a natural fracture system of significant vertical extent. The Kimmeridge HH-4 well, also situated updip of both HH-1 and HH-2z, is likely to be a highly inclined or "slant" well, designed with a lateral orientation approximately orthogonal to the known regional open natural fracture direction, so as to maximise the number of open fractures penetrated. It is expected that the further HH-3 Portland and HH-4 Kimmeridge infill wells will be planned in detail and drilled at Horse Hill following the completion of the Company's potentially transformational initial Turkey Basur-Resan appraisal drilling campaign.