UK Oil & Gas Investments (UKOG) has plans to focus on appraising the onshore PEDL331 Arreton oil discovery and satellite exploration prospects.
It informed the oil and gas authority that it will not seek any additional extension to the offshore P1916 Licence.
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As a result, the P1916 Licence, in which UK Oil & Gas Investments held a 100% stake, has now ended.
According to the company, this decision was taken due to the offshore licence’s low geological prospectivity, high-environmental sensitivity and consequential high-associated drilling costs. As a consequence, the company claimed that no remaining P1916 Licence obligations remain.
As reported in January 2016, Xodus’ independent report indicated a gross mean aggregated oil of 227 million barrels (mmbbls) to the onshore Arreton oil discovery and associated Arreton South and North satellite prospects.
Recoverable gross 2C contingent resources were indicated as 15.7mmbbls, with 10.2mmbbls net to UKOG.
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By GlobalDataUKOG holds a 65% interest in PEDL331.
Arreton site selection and regulatory permitting activities are currently underway for an appraisal drilling campaign in the first half of 2019.
UKOG executive chairman Stephen Sanderson said: “The Arreton discovery on the Isle of Wight’s remains a key element of the company’s 2018 and 2019 growth strategy and plans. We look forward to working with our partners towards a successful 2019 appraisal drilling campaign.”
