UK Oil & Gas tripled its resource base overnight after Xodus pegged its Arreton prospects to contain 219 million barrels.
The Arreton Main discovery and Arreton Prospects lie within a 200 square km of the 14th round licence offered to the company by the Oil and Gas Authority.
UKOG owns a 65% interest in the prospect.
Chief executive Stephen Sanderson said the firm was committed to developing the “assets with due sensitivity to the surrounding beauty of the locale and its rural way of life”.
He said: “The Arreton Main oil discovery and the adjacent Arreton Prospects more than triples the Company’s net recoverable conventional oil resource base. The additional prospects and leads to the west adds further valuable upside. The PEDL 331 Licence is thus a highly significant and material addition to our portfolio and will be a key part of the Company’s growth plans.
“We are well advanced in our plans to drill a vertical pilot and horizontal appraisal of the Arreton-2 oil discovery. We are confident that, since independently derived drilling costs are relatively modest, the economic viability of the project is robust even at reduced oil prices. We will also be looking to employ new and innovative limestone reservoir stimulation techniques to deliver maximum rate and recovery to further boost economic viability, without massive hydraulic fracturing.
“I must stress that whilst the planned Arreton site is immediately adjacent to existing brownfield developments, UKOG is committed to developing these assets with due sensitivity to the surrounding beauty of the locale and its rural way of life.”
Solo Oil owns 30% of the prospect and Angus Energy owns the remaining 5%.