LONDON (Alliance News) - United Oil & Gas PLC shares rose on Thursday as the company confirmed it has been awarded two new blocks in the UK North Sea.
Blocks 15/18d and 15/19b have estimated of up to 16 million barrels of recoverable oil, the company said, and it has already started farm-in discussions.
UOG was provisionally awarded the blocks in May, and the licence terms are set to begin on October 1.
The blocks cover 13.6 square kilometres, and are near to be Piper, MacCulloch, and Dumbarton/Donan oil fields.
The company said its own internal estimates suggest a range of recoverable oil between 4 million and 16 million barrels, with a midcase of 9 million barrels.
Chief Executive Brian Larkin said: "A number of factors including the existing multi-million barrel oil discovery, multiple leads and targets, an excellent location close to substantial oil fields, and the attractive cost profile of exploration and production in the North Sea all culminate to position these licences as compelling investment opportunities.
"Confirmation of the award enables us to pursue farm-out discussions with potential partners with whom we can work to take these licences forward."
Shares were 3.3% higher on Thursday at 5.12 pence each.
United Oil&gas (UOG)