Regulator extends permit for two years on court appeal
Up to 54 Bcf of gas estimated to lie in UKOG license
Loxley could be UK's second-biggest onshore gas field
UK-based explorer UK Oil and Gas (UKOG) said June 21 it had been awarded a two-year extension for its onshore Loxley gas appraisal project by UK regulator, the Oil and Gas Authority.
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Register NowUKOG in September said Loxley in southern England could potentially be the UK's second-largest onshore gas field as it announced plans to drill the Loxley-1 appraisal well in the second half of 2021.
However, Surrey County Council in December refused planning consent for the gas appraisal project.
UKOG has appealed against the decision and as a result has now been given an extra two years until the end of 2023 to drill the appraisal well.
"The drilling extension was granted in response to delays beyond the company's control caused by both the pandemic and by the company's appeal against Surrey County Council's decision to refuse planning consent," UKOG said in a statement.
It said it would present a "robust" case in its bid to overturn the decision at the forthcoming public inquiry, which is due to commence on July 27.
UKOG said in December there were "strong grounds" to expect a positive appeal outcome given that the council's refusal was in conflict with its own planning officer's reports and two separate recommendations for approval.
Recoverable resources
In September, UKOG said a new report from consultancy Xodus Group estimated recoverable gas resources at the discovery lying within its 100%-owned PEDL234 license of up to 54 Bcf.
Including parts of the Loxley accumulation located outside of the license area, recoverable gas resources are estimated at up to 70 Bcf in a high-case scenario.
"If proven by future production, the calculated gross mean recoverable resources would place Loxley second after the Saltfleetby gas field, the UK onshore's largest gas field to date, which produced approximately 73 Bcf," UKOG said at the time.
Saltfleetby, now operated by UK-based Angus Energy, is located in eastern England and is due to resume production at the end of 2021 to monetize its remaining reserves.
UKOG has said its production from Loxley could be converted into hydrogen in line with the UK government's plans for net-zero emissions by 2050.
"The company envisages Loxley could play its part in helping achieve net-zero via the supply of gas feedstock for reformation into clean burning hydrogen," it said.
"Loxley's and other UK domestic gas also provide a much lower carbon-footprint hydrogen feedstock option than imports, having approximately a quarter of the carbon emissions of imported LNG," it said.
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UK explorer UKOG wins more time for UK onshore gas appraisal - S&P Global
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