UK Oil & Gas plc has appointed specialist adviser Envoi Ltd for the farm-out of up to 50% of the Loxley gas and hydrogen feedstock project.
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The farm-out aims to have the planned Loxley-1 appraisal drilling and testing programme carried by the future partner or partners.
UKOG said that there were also separate “active discussions” with two UK listed energy companies interested in the farmout opportunity.
Loxley, within PEDL234, contains mid-case recoverable 2C contingent resources of 31 billion cubic feet net to UKOG, based on a February 2023 competent persons report.
Chief executive Stephen Sanderson added: “The farm-out process is designed to fully fund the Loxley appraisal programme and, if successful, remove the requirement for the company to raise additional funds for its share of costs for this material project.”
Envoi specialises in acquisition and divestment, portfolio advice and project marketing for the international upstream energy industry.