Independent Oil & Gas PLC (LON:IOG) has been given two years grace to delay a drill programme at the Harvey licence in the North Sea.
The UK Oil & Gas Authority has approved a two-year extension to the initial term for the P2085 licence, which hosts Harvey, giving the company until 20 September 2019.
READ: IOG reveals £79mln valuation for Harvey project
The company said it will need to have a drill contractor in place by November 2018.
"We are pleased to have received a 2-year extension to the Harvey licence as it further validates our commitment to drill the well on what has the potential to become our largest gas asset,” said Mark Routh, interim chairman.
READ: IOG reveals new gas estimate for Harvey project
“We will now progress to finalise our plans to drill the well and look forward to providing details in due course."
Harvey is estimated to have some 114 billion cubic feet of prospective gas resources.