IGas has announced a new drilling site in the Weald in southern England with plans for up to two exploration and appraisal wells.
In a statement to investors this morning, the company said the site – not yet identified – was in PEDL235, which covers the area east of Haslemere in Surrey.
IGas said the first proposed well in PEDL235 would explore for gas in the Portland sandstones and oil in the Kimmeridge micrites.
Discussions over planning application
Discussions would begin soon with Surrey County Council about submitting a planning application, IGas said. There would be a community consultation with local residents, the statement added.
In May 2018, IGas announced it was trying to sell 25% of PEDL235 to Online Petroleum Limited, a company with links to the drilling firm, PW Well Services. The PEDL was one of 10 licences in the deal, described by IGas as “non-core assets”. They included some of the company’s lowest producing fields.
But in the IGas annual accounts, in March 2019, the company revealed that it was unlikely to get consent for the deal from the Oil and Gas Authority. Today, IGas said it had been unable to agree the transaction and it now continued to hold 100% of PEDL235 and the other licences.
Three wells were drilled in PEDL235 in the 1980s at Godley Bridge by the then operator, Conoco.
IGas said its studies had shown that the Kimmeridge Micrities had potential resources of about 300 million barrels in the licence area. The Portland Sandstone gas discovery in the PEDL was estimated about 1.4 million barrels of oil equivalent.
The IGas chief executive, Stephen Bowler, said today:
“In conjunction with our own technical studies, and data from the discoveries in the Weald basin at Horse Hill, we are excited to be bringing forward up to two exploration/appraisal wells and production tests with the potential to unlock significant recoverable resources at a new site in the Weald Basin. “