United Oil & Gas announces farm-in to southern UK licences
DUBLIN -- United Oil & Gas Plc, the London Stock Exchange listed oil and gas exploration and development company, is pleased to announce an agreement to farm-in to the Corallian Energy Limited (Corallian) interests in its southern UK oil and gas assets.
United has entered into a farmout agreement with Corallian Energy Limited, a private UK oil and gas appraisal and exploration company, to acquire an initial 10%. interest from Corallian in each of three licences held by a joint venture between Corallian (60%) as operator and Corfe Energy Limited (Corfe) (40%) offshore and onshore southern UK (Initial Farmed Interest), by way of paying 13.33%. of the costs associated with the Colter well, planned for second-quarter 2018. In addition, an option has been granted, which expires at the end of March, under which United can exercise a right to purchase an additional 10%. interest in these licences (additional farmed interest), on the same terms as the Initial Farmed Interest.
Corallian and Corfe jointly hold equity in licence P1918, offshore southern UK, and onshore UK licences PEDL330 and PEDL345 (further details of which are set out in Appendix 1 below). The P1918 licence, includes the Colter discovery, adjacent to the largest onshore oil field in Europe, Wytch Farm, which has produced in excess of 450 MMbbl oil.
An appraisal well on the Colter structure is planned to be drilled in second-quarter 2018 and will cost approximately £7 millon gross. United estimate their share of this to be £933,100. It is planned to drill this well up-dip of the Sherwood Sandstone discovery made by Well 98/11-3 in 1986. Although this new well will be drilled via an offshore jackup, potential development is likely to be through the facilities at Wytch Farm via extended reach drilling.
Additionally, United and Corallian have established an Area of Mutual Interest (AMI) for the area, enabling the partnership to identify and target further opportunities within the same play.
