UK Oil & Gas plc (UKOG) has been granted a two-year extension to drill in its licences at Horse Hill oil field near Gatwick, southeast England.
The company said that the Oil & Gas Authority gave approval to the remaining drilling deadlines at PEDL137 and PEDL246 in response to Covid-19.
These are needed to satisfy in full the agreed retention area (RA) work programmes of the company’s two operated 85.635% licences.
The RA programme deadlines are now to start drilling a Kimmeridge appraisal well in PEDL137 well by 30 September 2022, and a Kimmeridge exploration well in PEDL246 by 30 June 2025.
UKOG added that fulfilment of the RA programme enabled the company to retain all the licensed area as opposed to a relinquishment of part of the licence.
Both extensions are retroactive and take effect from the RA anniversary date of 30 September 2020 for PEDL137 and 30 June 2020 for PEDL246.