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(Alliance News) - Baron Oil PLC and Upland Resources Ltd on Friday said that their joint-venture has been awarded with two new exclusive licences over seven blocks in the Inner Moray Firth exploration area in offshore Scotland.
Upland will have a 40% stake in the licences, through its subsidiary Upland Resources (UK Onshore) Ltd and Baron Oil will have a 15% working interest. Private-owned oil and gas exploration firm Corallian Energy Ltd has the remaining 45% holding.
The partners were awarded the licences by the UK Oil & Gas Authority following the 31st Offshore Licensing Round.
Both companies hailed the exploration area as "highly prospective with multiple prospects".
Licence P2478 contains four blocks and includes a new gas discovery which according to Corallian estimates, has a promising prospective resource.
Licence P2470, across three blocks, includes the Wick Prospect, which the two companies, alongside Reabold Resources PLC, drilled to unsuccessful results in January.
The partners must complete 3D seismic reprocessing and make a decision whether to conduct drilling or drop the licences within the next four years, the companies explained.
Baron Oil Executive Chair Malcolm Butler said: "I am pleased that our bidding group has satisfied the OGA's requirements and has now been issued with the licences. Our initial work commitments consist mainly of 3D seismic reprocessing. We have already identified substantial prospects in the acreage and expect that the reprocessing work will enable us to define at least one near-term drilling location."
Upland Chief Executive Steve Staley said: "I am pleased to be able to record that our bidding group has accepted the OGA's offer and has now been issued with the licences. We already see substantial prospectivity in the acreage which 3D reprocessing work should further derisk and allow us to select a top-ranked drilling candidate.
"We look forward to updating the market on this and our Tunisian and Sarawakian projects in due course."
Shares in Baron Oil were 3.8% higher at 0.083 pence each in London on Friday afternoon, Upland's stock was trading 2.8% higher at 2.06p apiece.