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UK Oil & Gas gets licence extension at Kimmeridge
UK Oil & Gas Investments has been informed by its wholly-owned subsidiary, Kimmeridge Oil & Gas, that the Oil and Gas Authority has extended the licence term of its 100%-owned PEDL 234 licence from 30 June this year until 31 December 2023, it announced on Thursday.
The AIM-traded firm said the licence would now be converted to the 14th Licence Round Master Clauses Agreement, which would permits a retention area (RA) covering the entirety of the 300 square kilometre Licence area to be created.
It said the agreed RA work programme comprised the drilling of two further Kimmeridge Limestone step-out exploration wells in two new sites in the central area of the licence.
One well would also appraise the potentially significant Godley Bridge-1 Portland gas discovery.
In the event of a commercial discovery, the work would also see the drilling and flow testing of an appraisal well or sidetrack.
The board noted that a sidetrack to the BB-1 discovery would fulfil that commitment.
Following completion of the drilling programme and in the event of a commercial discovery, the company would then acquire 50 kilometres of 2D seismic data and submit a field development plan to the Oil and Gas Authority.
"This key five-year plus licence extension will enable the company to drill its two planned new Kimmeridge exploration wells in the deepest and most oil generative Kimmeridge section of the Weald Basin," said UK Oil & Gas executive chairman Stephen Sanderson.
"Locations for both wells, situated between the Horse Hill oil discovery to the north and the BB-1/1z and Balcombe-1 discoveries to the south, have been selected and the regulatory permitting process is underway to enable drilling in 2019.
"A further BB-1y sidetrack also remains very much on the cards."