UK Oil & Gas Investments (LON:UKOG) has secured an extension for acreage offshore Isle of Wight.
Licence P1916 has had its initial exploration period extended to January 31 2017.
It gives the company more time to finalise drilling plans for the ‘M’ prospect and secure regulatory permissions.
"The licence extension will greatly facilitate our current efforts towards drilling this exciting prospect," said chief executive Stephen Sanderson.
The acreage was acquired as part of UKOG’s 2014 deal to acquire Northern Petroleum’s UK assets.
NOP secured the asset in July 2012 and, under the original terms, a well was required by February 2016. The ‘M’ prospect is deemed to be ‘drill ready’.
UKOG believes that the Isle of Wight acreage may have similarities with the geology encountered at the Horse Hill discovery.