AIM-listed UK Oil & Gas (UKOG) has announced that SGN (southern England's gas distribution pipeline network operator) has confirmed that their Local Transmission System ('LTS') can accept all the potential future gas production from UKOG's 100%-owned Loxley gas discovery. SGN's capacity thus provides a clear route to the wider gas market and the monetisation of Loxley's gas.
SGN's network analysis demonstrates that the LTS can readily accept 34,500 cubic metres per hour (equivalent to 30 million cubic feet of gas per day), corresponding to Loxley's high-side forecast field production rate. A pipeline routeing study to the identified grid entry point can now commence.
UKOG announced Feb 1 2023 that 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
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
