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(Alliance News) - Partners United Oil & Gas PLC, Baron Oil PLC and Andalas Energy & Power PLC on Friday said that their joint venture group has decided not to accept the petroleum licence in Poole, southern England, offered by the UK oil regulator.
Due to a demarcation change of the areas under offer by the UK Oil & Gas Authority, Blocks 98/11b and 98/12, which were initially awarded to the joint-venture, are now no longer part of the areas offered.
United Oil Chief Executive Brian Larkin said: "The decision to turn down these amended petroleum licences over Blocks 98/11b and 98/12 is the correct one. Should the opportunity arise in the future to bid for the areas adjoining Colter South we will examine that very closely."
Baron Oil added: "The revised blocks now being offered are no longer adjacent to the Colter South discovery and no longer include the primary targets that had been identified as part of the application process.
"As a result, the joint-venture group has decided not to accept the petroleum licence offered over the remaining, seaward parts of blocks 98/11b and 98/12 as it does not fit with the partners' strategy for developing Licence P1918."
Baron explained that this does not affect the existing Colter and Colter South Prospects in Block 98/11a.
Andalas Chief Executive Simon Gorringe added: "We believe that the joint venture group's decision not to proceed with taking up the OGA's offer is the correct one. The joint venture may bid for the areas adjoining Colter South in the future in which case Andalas will review the opportunity at the time."
The blocks were initially awarded as part of the regulator's 31st licensing road.
The joint-venture is operated by private UK oil and gas exploration Corallian Energy Ltd.
Baron shares were 3.8% lower at 0.077 in London on Friday morning and Andalas was 11% lower at 0.15p.
United Oil shares are currently suspended from trading under AIM rules as its acquisition of oil and gas explorer Rockhopper Exploration PLC is deemed a reverse takeover.
By Eric Cunha; ericcunha@alliancenews.com
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