Oilex Enters East Irish Sea
Australia's Oilex has taken a 100% interest in the Doyle-Peel licence (P2446) in the East Irish Sea off the UK, the company announced on December 14.
Oilex bought the licence from Burgate Exploration and Production, having agreed to pay £60,000 ($80,000) in four quarterly instalments, with the first due no later than January 31 2021. It will also issue 42.5mn of its shares.
The licence provides "an attractive entry into a proven gas fairway in the centre of the East Irish Sea basin," Oilex said, noting that some 8 trillion ft3 of gas had been produced in the area to date. It is in shallow waters near existing infrastructure, which reduces the complexity, risk and cost of development, the company said.
"The Doyle-Peel prospects have been of interest to us for some time as they have the potential to host substantial prospective resources and this acquisition and this transaction gives us a foothold in the prolific UK Continental Shelf," Oilex managing director Joe Salomon said.
Oilex agreed the transaction in December last year. The company will need to secure funding for the remaining work commitments at the licence, estimated to cost £25,000. The programme runs until October 2021 and includes the reprocessing of 50 km2 of 3D seismic data and the acquisition of 2,500 km of aeromagnetic data. Oilex will then commit to drilling a well within three years or decide to drop the licence.