Just four days ahead of a symbolic gathering and formal presentation by the Frack Free Isle of Wight group, one of companies that was recently awarded a licence to drill for oil and gas on the Isle of Wight, reveal they’ll be pushing forward with plans.
UKOG: Economic viability of project is robust
It was suggested at last week’s full council meeting (read live coverage) that given the price of oil and the cost of extraction, that the likelihood of exploration on the Isle of Wight was low.
However, the release of an independent review report by Xodus Group Ltd, estimates a whopping 219 million barrels of oil within the 200 square km area the licences fall within.
The chairman of UK Oil and Gas Investments (UKOG) says that “since independently derived drilling costs are relatively modest, the economic viability of the project is robust”.
UKOG: A key part of the Company’s growth plans
In an official statement issued today (Thursday), Stephen Sanderson, UKOG’s Executive Chairman, said,
“The Arreton Main oil discovery and the adjacent Arreton Prospects more than triples the Company’s net recoverable conventional oil resource base. The additional prospects and leads to the west adds further valuable upside. The PEDL 331 Licence is thus a highly significant and material addition to our portfolio and will be a key part of the Company’s growth plans.
“We are well advanced in our plans to drill a vertical pilot and horizontal appraisal of the Arreton-2 oil discovery. We are confident that, since independently derived drilling costs are relatively modest, the economic viability of the project is robust even at reduced oil prices. We will also be looking to employ new and innovative limestone reservoir stimulation techniques to deliver maximum rate and recovery to further boost economic viability, without massive hydraulic fracturing.”
Plans due in 2016
As reported in December, planning application is due to be submitted to the Isle of Wight council for consideration this year.
Mr Sanderson finished by saying,
“I must stress that whilst the planned Arreton site is immediately adjacent to existing brownfield developments, UKOG is committed to developing these assets with due sensitivity to the surrounding beauty of the locale and its rural way of life.”
Sources: FE Investegate and UKOG (PDF)
