UKOG-Egdon-Angus give up Holmwood oil licence

UK Oil and Gas announced today that it had relinquished its oil licence PEDL143 in Holmwood, Surrey, in which it held a 67.5% stake.

The other main partners in the licence who have also given up their interests are Egdon Resources plc (18.4%) and Angus Energy (12.5%).

UKOG said that a detailed study had been carried out examining the viability of drilling the A24 (formerly Holmwood) Portland prospect’s centre from selected sites outside the Surrey Hills Area of Outstanding Natural Beauty, each over 3 km from the target.

The study concluded that “the required long-reach/shallow target-depth wells are neither technically viable or economically feasible.”

“Consequently, UKOG and its partners have now relinquished their interests in the licence,” said UKOG.

“It remains a great disappointment to the company that the licence’s former operator, Europa Oil and Gas, whilst in possession of planning consent, failed to drill the prospect from the Holmwood site, around 1 km from the target.”

Managing director of Egdon Resources plc, Mark Abbott, added: “The relinquishment is supported by Egdon, as a technically and commercially viable site to drill the A24 Prospect (formerly Holmwood) couldn’t be identified. 

“It enables Egdon to focus its resources on the core near-term priorities; namely, moving to production at Wressle during this quarter, progressing drilling options at Biscathorpe and North Kelsey, and acquiring a marine 3D seismic survey over the Resolution and Endeavour gas discoveries during the coming period.”

Angus Energy’s managing director George Lucan said the company would focus on its principal assets at Balcombe, which is awaiting a planning decision and Saltfleetby in North Yorkshire where gas pipeline installation is underway.