United Oil & Gas Plc, the London Stock Exchange listed oil and gas exploration and development company, is pleased to provide an update on the Colter appraisal well ('the Well') on P1918 in the Wessex Basin. United holds a 10% interest in the Well, which is operated by Corallian Energy.
The Department for Business, Energy and Industrial Strategy, Offshore Petroleum Regulator for Environment and Decommissioning (‘OPRED') has completed its review of the Environmental Statement (‘ES'), the representations received from consultees and additional information provided for the Colter well. Based on this review, OPRED has advised the Oil and Gas Authority (‘OGA') of its in-principle agreement to the issue of the relevant consent for the Well.
Subject to these relevant further approvals being received, Corallian Energy intends to drill the Colter well as soon as operations are completed at its Wick prospect. Operations at Wick are due to commence in December 2018. As previously reported, the Ensco-72 jack-up drilling unit has been contracted to drill the Well and the rig site survey has been completed.
Colter will appraise a historic discovery that lies immediately to the south of Europe's largest onshore oil field at Wytch Farm. The discovery was made in 1986 by well 98/11-3, 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 where over 450mmbbls have been produced to date. The new well will be drilled updip of 98/11-3 targeting significant potential that has been identified following reprocessing of 3D seismic data. The gross unrisked mid-case oil contingent resources in the section proven up by the 98/11-3 well have been estimated at 4mmbbls, with gross unrisked mean-case prospective resources estimated at 15mmbbls in the rest of the structure.
United Oil & Gas PLC CEO, Brian Larkin, said: "With OPRED advising the OGA of its in-principle agreement to the issue of the relevant consents, a drilling unit secured and the rig site survey completed, the Colter appraisal well remains on course to be the second well in which United will have participated since our Readmission to London's Main market in Q3 2017. As with our first well, the successful Podere Maiar on the Podere Gallina licence onshore Italy, Colter has an excellent address, lying on the same play as Wytch Farm, and will appraise a historic discovery, which we believe could hold in aggregate up to 19mmbbls of gross contingent and prospective resources. With this in mind, I look forward to providing further updates on preparations to drill the Colter well in the coming weeks.
“As well as Colter, activity continues apace across our existing licence base, all of which is centred on exposing our shareholders to a continuous pipeline of high-impact events with significant re-rating potential. Shareholders can look forward to further updates on the Walton-Morant licence offshore Jamaica, which includes the high grade Colibri target. As previously reported, early indications from the recently acquired 3D seismic data have been highly encouraging. The results from the ongoing processing and interpretation work will inform the forward plan for the Tullow Oil operated licence, including the preparation of a CPR. In the North Sea, we have received significant interest in our Crown oil discovery, which is located in what is proving to be a hotspot in terms of corporate activity. Together with a potential well at Waddock Cross in the Wessex Basin in H1 2019 and our ongoing evaluation of a number of new ventures, we are confident the excellent momentum behind United will, at the very least, be maintained in the months ahead and beyond.”