United Oil & Gas plc said that a five-year extension has been granted to PL090 containing the Waddock Cross onshore oil field in Dorset.
REDEVELOPMENT
The company holds a 26.5% working interest in PL090, of which the operator is Egdon Resources plc, owned by Petrichor Partners LP, which in turn is owned by Heyco Energy Group Inc.
Egdon appraised the discovery in 2004 and 2005 before development in 2013.
Described as a “challenging field with a thin oil zone and water drive”, the operator estimates Waddock Cross holds more than 57 million barrels of oil.
When redeveloped with a new horizontal well, the project has the potential to produce 500 to 800 barrels of oil per day (gross) and approximately one million barrels of gross recoverable oil.
United said that the extension from the North Sea Transition Authority is a signed deed of variation relating to PL090 “with the effect of extending the term of the licence for another five years” to 31 March 2029.
The company, which has a default notice for US$3.8m relating to its Egypt interest, said that Egdon was progressing redevelopment plans for Waddock Cross, including planning permissions and permit application.
“This is a significant milestone for us, and we are excited about the low risk, high margin redevelopment opportunity it presents,” added chief executive officer Brian Larkin.
“We are looking forward to working with the operator as plans to restart production at Waddock Cross are actively progressed.”