United Oil & Gas awarded new license in UK North Sea

London-listed United Oil & Gas has been awarded two highly prospective blocks in the UK North Sea.

Included in the blocks is the Crown oil discovery which the group says could contain up to 16 million barrels of recoverable oil.

The company has been provisionally awarded a 95pc interest in blocks 15/18d and 15/19b which cover an area of around 13.6 sq km and contain “multiple targets.”

Block 15/19b contains the Palaeocene Crown discovery and United’s internal estimates suggest a range in recoverable volumes for Crown of 4-16 million barrels of oil, with mid-case estimates of nine million barrels of oil.

“The award of the blocks is part of the strategy of utilising our technical expertise to develop what we believe to be highly prospective opportunities,” Brian Larkin, CEO of United Oil & Gas, said.

“Crown is the latest addition to our growing portfolio of high grade targets in the UK, Italy, and offshore Jamaica that are at various stages of development and monetisation, and we continue to evaluate further acquisition opportunities.”

The blocks, which have been applied for in conjunction with private oil and gas exploration company Swift Exploration, are close to the substantial Piper, MacCulloch and Dumbarton/Donan oil fields.

The blocks have been awarded on the basis of a work programme involving seismic reprocessing to reduce the uncertainty on the estimated oil volumes and to optimise the location of any future development well.

The licence applications are part of the company’s strategy to identify and acquire exploration/development plays that offer investors near term value trigger opportunities and significant value upside.

The group‘s share price rose around 3pc on the announcement.

Online Editors