LONDON (Alliance News) - Four AIM-listed companies working together on the PEDL 143 licence in Surrey on Monday said they have secured a two-year licence extension that will allow the group to drill the Holmwood prospect that is thought to hold up to 5.6 million barrels of oil.
Europa Oil & Gas (Holdings) PLC, Egdon Resources PLC, Union Jack Oil PLC and UK Oil & Gas Investments PLC are working in partnership on the licence over the Weald Basin, which has been extyended until the start of October 2018 by the Oil & Gas Authority.
Europa, as the operator, plans to drill the main Holmwood prospect within the licence either late this year or in the first half of 2017, with the timing dependent on funding.
The Holmwood prospect lies 5.0 kilometres to the south of the producing Brockham field and 12.0 kilometres from the Horse Hill project which involves a string of AIM-listed companies.
Planning permission is in place for a deviated exploration well to be drilled at Holmwood which will penetrate similar stratigraphy to Horse Hill, targeting oil in Upper and Lower Kimmeridge Limestones in addition to Corallian and Portlandian sandstones.
Notably, the 5.6 million barrels of prospective resources at Holmwood does not include any estimate for the Jurassic limestones which have been found to be producing in Horse Hill.
Europa said it believes there is a "one in three chance of success" of drilling the prospect.
Union Jack is currently in the process of earning its stake in the prospect and is waiting for the UK Oil & Gas Authority to approve the deal. If approved, Europa would hold a 32.5% stake, Egdon 18.4%, UK Oil & Gas 30%, and Union Jack Oil would earn its 7.5% stake. The other partners are Warwick Energy with a 10% stake and Altwood Petroleum with a 1.6% stake.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Uk Oil & Gas (UKOG)
Europa Oil & Gas (EOG)
Union Jack (UJO)