UKOG Confirms Significant Onshore Gas Resource
London-listed UK Oil & Gas (UKOG) reported on September 21 that a study by consultancy Xodus Group showed its Loxley Portland gas discovery in southern England to be "significant," with 49bn ft3 in mean-case gross initially in-place (GIIP) gas.
UKOG is the 100% owner of the PEDL234 licence containing Loxley. Some 34bn ft3 of the gas is thought to be technically recoverable. The high-case estimate for GIIP gas is 76bn ft3 and the low-case estimate is 27bn ft3.
These figures only account for gas within UKOG's licence. The total Loxley accumulation is assessed to hold between 33bn and 98bn ft3 of GIIP gas, with a mean-case estimate of 63bn ft3.
In terms of recoverable resources, Loxley is among the largest gas accumulations ever discovered and flow-tested in the UK onshore, UKOG said. If proven with future production, its gross mean recoverable resources would make it the second biggest find after the Saltfleetby gas field.
Loxley is "capable in the success case of making a significant and timely contribution to the local and national requirement for net zero compliant energy," CEO Stephen Sanderson said.
UKOG said Xodus' results supported its view that Loxley could produce 4-5bn ft3/yr of gas under a best-case scenario, providing power to around 200,000 homes. The company aims to drill the Loxley-1 well in the second half of 2021, provided it can get planning consent.
Surrey County Council consented to development plans on June 29 but after decided to rerun the decision after receiving external advice and over a 100 formal complaints. It will vote on the decision again on October 22.