2nd Aug 2021 11:39
(Alliance News) - UK Oil & Gas PLC on Monday said appraisal of the Basur oil discovery in Turkey has been delayed after a directional drilling assembly got stuck in a hole.
London-based UK Oil & Gas is an exploration company focused on the UK and Turkey. It owns 50% of the licence which includes Basur.
Shares were down 13% to 0.14 pence in London on Monday morning.
The operator of the Basur-3 appraisal well, Aladdin Middle East, recovered the assembly and returned it safely to the surface. The well had drilled to a depth immediately above the target objectives before the incident. However, the hole is now unsuitable for onward drilling.
Aladdin Middle East will now have to drill a new hole after completing seismic tests, which are due to start this month. Sufficient funds are available for the tests and drilling, UK Oil & Gas said.
"Clearly the unforeseen delay in delivering the Basur appraisal objective is disappointing, but we remain pleased by AME's exemplary performance in resolving the stuck drilling assembly situation," UK Oil & Gas Chief Executive Stephen Sanderson said.
Separately, UK Oil & Gas announced the Oil & Gas Authority granted two-year extensions to two licence deadlines at the Horse Hill project near Gatwick Airport. The company now has until September 2022 to start drilling an appraisal well at PEDL137, and until June 2025 to start drilling an exploration well at PEDL246.
Fulfilling those deadlines will allow UK Oil & Gas to keep all of the licenced area rather than relinquish part of it, the company said.
By Ivan Edwards; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
UK Oil & Gas