UK Oil & Gas Investments PLC (LON:UKOG) shares edged higher on Thursday after the onshore oiler revealed that it has secured an extension to its licence for the Broadford Bridge project in Southern England.
The UK Oil and Gas Authority has granted the extension for the PEDL234 licence to 31 December 2023, from the previous deadline of 30 June 2018.
It comes with an agreed work programme that will include two additional wells into the Kimmeridge limestone, in new locations within the central part of the licence - one of which will also test the potentially significant Godley Bridge-1 Portland gas discovery.
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Additionally, in the event of a commercial discovery within the licence (including the existing BB-1 discovery) the company will be required to drill and flow test an appraisal well or sidetrack.
"This key five-year plus licence extension will enable the company to drill its two planned new Kimmeridge exploration wells in the deepest and most oil generative Kimmeridge section of the Weald Basin.
“Locations for both wells, situated between the Horse Hill oil discovery to the north and the BB-1/1z and Balcombe-1 discoveries to the south, have been selected and the regulatory permitting process is underway to enable drilling in 2019.
“A further BB-1y sidetrack also remains very much on the cards."
In lunchtime trading, UK Oil & Gas shares were up 1.7% at 1.48p.
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