16th May 2018 13:08
LONDON (Alliance News) - Upland Resources Ltd said Wednesday the UK Oil & Gas Authority has given its consent for Upland to take a stake in the Wick prospect in the UK North Sea off Scotland.
The company is "working closely" with Corallian Energy Ltd, and other licence partners, towards completion of the Wick farm-in agreement.
In November, Upland entered into an agreement with Corallian Energy to farm into a 40% interest in Licence P2235. The licence could hold resources of about 250 million barrels of oil. The well is expected to commence drilling in the third quarter of 2018.
Upland Chief Executive Officer Steve Staley said: "The UK Oil & Gas Authority's consent to our farm-in to a 40% interest in the P2235 Licence is another significant milestone as progress is made towards initiating drilling at the Wick prospect in the third quarter of 2018. This, alongside the Letter of Intent agreed by Corallian Energy with Ensco, shows the efficient progress being made as the date of commencement of drilling gets closer."
Separately, Baron Oil PLC said Wednesday it also had been given approval to take an interest in the Wick prospect.
Baron was informed by Corallian Energy Ltd - which operates the P2235 license for Wick - that the UK Oil & Gas Authority had approved the assignment of the 15% interest in the license.
"This approval enables Baron to formalise its 15% interest in the licence holding the Wick prospect and become a full voting party under the Joint Operating Agreement, which is now being prepared and will govern operations on the licence," Baron Oil Chairman & Chief Executive Officer Malcolm Butler said.
In early March, Baron agreed with Corallian to pay 20% of the costs related to the first well on the Wick prospect to acquire a 15% interest in licence P2235.
Shares in Upland Resources were up 0.9% Wednesday to 3.18 pence each, while Baron was 1.7% higher at 0.53p.
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