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(Alliance News) - UK Oil & Gas PLC on Tuesday reported that RPS Energy Consultants completed its competent person's report on the company's potential economic value of the Loxley gas discovery.
UK Oil & Gas shares jumped 22% to 0.074 pence each on Tuesday afternoon in London.
UK Oil & Gas is an oil and gas exploration and production firm with assets focused on the south of England. It said that the report shows a value of up to GBP124 million, with about 31.0 billion cubic feet within its fully owned PEDL234 licence.
UK Oil said planning and environmental consents are in place for the Loxley-1 appraisal campaign, which is planned for 2024. If successful, the company targets gas production and sales from 2026.
Chief Executive Officer Stephen Sanderson said: "The competent person's report confirms that Loxley, one of the UK's largest onshore gas discoveries, possesses material present value in today's prevailing higher gas price world. Its potential future revenue streams have the capacity to deliver material shareholder value in the foreseeable future and its recoverable resources to contribute towards the UK's future energy security."
Sanderson added that the potential value means the company can now plan to fund a future development via conventional oil and gas debt funding.
Looking ahead, he said: "Once Loxley is depleted of natural gas by around 2036, we are also investigating its use to store around 1 billion cubic metres of hydrogen, a further addition to the company's and UK's much-needed future energy storage portfolio."
By Tom Budszus, Alliance News reporter
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