AIM-listed UK Oil & Gas (UKOG) has announced that the North Sea Transition Authority ('NSTA') has granted its consent to a modified PEDL234 Retention Area ('RA') work programme. The revision will permit the Company to focus licence activities entirely upon the acceleration of the planned appraisal campaign of its material 100%-owned Loxley gas discovery.
In accordance with the revised RA programme, the Company has agreed to commence the Loxley-1 appraisal well by 30th June 2024. Loxley-1, designed to confirm the commercial viability of the discovery, is planned to be completed as a future production well, one of only two wells required to produce Loxley's entire estimated material recoverable gas resources (see the Annual Report and Accounts Table 2 and RNS of 20th September 2020). The second production well, designed to maintain the desired plateau gas production rate, must be drilled by summer 2029.
In the event Loxley-1 confirms the discovery's commercial viability, the Company has also agreed to acquire 10 sq km of 3D seismic over the field by 30th June 2025 and to submit a Field Development Plan for NSTA consent by the end of 2025.
Background
The Loxley-1 project, located within licence PEDL234 (UKOG 100%) in the Weald Basin, plans to appraise the significant Portland gas accumulation originally discovered and flow tested 8 km to the west by Conoco's 1982 Godley Bridge-1 well.
Source: UKOG
