United Oil & Gas Plc, the London Stock Exchange listed oil and gas exploration and development company, is pleased to announce that an Authorisation for Expenditure (‘AFE') for the upcoming Colter appraisal well (‘the Well') on PEDL 1918 in the Wessex Basin has now been signed for a total cost of £7.5 million. The estimate is on a dry hole basis and equates to a cost of £1,001,378 net to United's 10% interest. Subject to regulatory approvals, the Colter well is due to be drilled in Q4 2018 and will appraise an historic discovery that lies immediately to the south of Europe's largest onshore oil field at Wytch Farm where over 450mmbbls have been produced to date.
Colter was discovered in 1986 by the 98/11-3 well, which encountered a 10.5m oil column in the Sherwood Sandstone reservoir, the same play that has proven to be so productive at Wytch Farm. Based on the results of pre-stack depth migration reprocessing of 3D seismic data, significant potential lies updip of 98/11-3, which was drilled to the south of the Colter structure. The new Well will target this potential. In a Competent Person's Report, ERCE assigned gross unrisked mid-case oil contingent resources of 4mmbbls to the section proven up by the 98/11-3 well, and gross unrisked mean-case prospective resources of 15mmbbls to the rest of the structure extending to the west. As well as the Sherwood Sandstone target that is the main reservoir from which Wytch Farm produces, there is also potential in the shallower Jurassic Bridport Sandstone which is in production at Wareham.
Corallian Energy Ltd is the operator of PEDL 1918 and holds a 45% interest alongside, Corfe Energy (40%), United (10%), and Baron Oil (5%).
United Oil & Gas Plc CEO, Brian Larkin, said, "The Colter well remains on track to be United's second well since the Company's Readmission in July 2017. As with the successful Podere Maiar gas discovery in Italy, Colter has an excellent address, being located close to Europe's largest onshore oil field; is targeting an historic discovery that has significant upside; and has good access to infrastructure. Colter may be a low risk appraisal play but with independently assigned contingent resources of 4mmbbls and additional gross prospective resources of 15mmbbls, it has the potential to generate high reward for United shareholders. I look forward to providing further updates on activity not only at Colter, but across our portfolio of near-term, low-risk development opportunities in Europe and higher-risk, high-impact exploration in Jamaica, during what promises to be an exciting period for United.”
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