After rowing back on 100bn barrels claim, UK Oil now says licence extension is being negotiated
More potentially bad news for those hoping Gatwick would turn out to be the new Dallas.
To recap, UK Oil and Gas Investments caused some excitement earlier this month by saying there might be 100bn barrels of oil near the airport after results from drilling the Horse Hill well.
In light of the news that PEDL137 is in process of being renewed, it seems a little odd that the Horse Hill prospectivity has been hyped and deflated the way it has – it has created a headwind for the operator in the negotiation of the terms of the obligation work programme in return for the extension.
Still, we don’t believe that the licence will be rescinded, or not extended, but the demands will be onerous on the group to fulfil, and given the planning headwinds, we don’t see a year being enough time.