United Oil & Gas Plc, the London Stock Exchange listed oil and gas exploration and development company, is pleased to announce a no cost option agreement to farm into offshore Block 49/29c UK Licence P2264 which contains the Acle prospect, jointly owned by Swift Exploration Limited (50%) and Stelinmatvic Industries Ltd (50%).
The Acle prospect is a clear 2.5 km2 four-way dip closure with further fault-bounded upside. Like most fields in the Southern North Sea, the reservoir is located in the Permian Rotliegendes formation and the Acle structure is located in close proximity to several significant producing gas fields including Gawain, Davy, Sean and Boyle. Acle is a low risk exploration prospect as a function of its four-way dip closure in a proven hydrocarbon fairway. As such, it has been ascribed a high chance of drilling success.
On exercise of this Option Agreement, United will sign a farm-in agreement with Swift and Stelinmatvic and will acquire 24% interest in the licence, being 12% from each of Swift and Stelinmatvic. For the combined 24% interest, United will pay 30% of the costs associated with the drilling of the first exploration well. In addition, United will pay £20 000 in cash to each partner on signing of the farm-in agreement.
The Option Agreement is exercisable upon a firm commitment being made to drill the well, and is valid until expiry of the licence, which will be no earlier than 30 June 2018.
United Oil & Gas Plc, Brian Larkin:
“We are very pleased to announce that we have secured a no cost option agreement with Swift Exploration Limited and Stelinmatvic Industries for a 24% working interest in Block 49/29c (licence P2264) which contains the Acle prospect and is located in the Southern North Sea. This option agreement secures a material equity position in the acreage for our shareholders and we look forward to assisting the joint venture partners in their discussions with other potential licence partnersand the Oil and Gas Authority.
We’ve had an exciting start to the year, announcing two new deals along with our successful flow test on our Italian licence which is now on the road to production. Our technical team, led by Jon Leather, have in a short period of time, delivered significant value for our shareholders.
We continue to evaluate further opportunities to add to our portfolio and we will update shareholders as discussions develop further”.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/26012018/united-oil-gas-plc-option-agreement-to-farm-into-licence-p2264/