AIM’s numerous investors in the Horse Hill oil discovery got a boost today with the extension of the PEDL 137 licence.
The Oil & Gas Authority (OGA) - the new industry regulator in the UK - has extended the exploration phase of the licence for an additional year, and thus the current licence now runs until September 30 2016.
It is anticipated that Horse Hill Developments Ltd, the operator and 65% stakeholder in the project, will apply to move the licence into the production stage in the future, subject to the results of a flow test which is planned for later this year.
In order to submit an application to enter the production phase HHDL will have to complete a field development plan.
UK Oil & Gas Investments (LON:UKOG) is the largest listed stakeholder in Horse Hill, with a 20.358% interest via a shareholding in HHDL. UKOG also owns the Markwells Wood and has 50% of Baxters Copse, both of which have also been extended for a year by the OGA.
Other AIM firms such as Solo Oil (LON:SOLO), Doriemus (LON:DOR), Alba Minerals (LON:ALBA), Stellar Resources (LON:STG) and Evocutis (LON:EVO) are also stakeholders in HHDL.