UK Oil & Gas (UKOG) has appointed a company to help farmout up to half its interest in the Loxley gas project in Surrey.

UKOG has planning permission to build a wellsite and drill and test one exploratory borehole and a side track near the village of Dunsfold.

The project also includes construction of a new access track, a new road junction and highway improvements.

UKOG announced this morning it had appointed Envoi, an oil and gas divestment and marketing specialist, to facilitate the farmout.

The farmout seeks to fund fully the Loxley drilling and testing programme, UKOG said, with its share of the costs carried by the farminee.

UKOG first announced a farmout at Loxley in July 2022.  It said this morning that “active discussions” were also ongoing on a farmout with two energy companies, separately from Envoi’s work.

UKOG’s chief executive, Stephen Sanderson, said if the farmout process were successful it would “remove the requirement for the company to raise additional funds for its share of costs” for the Loxley project.

Local people have opposed drilling at Loxley.

The scheme was twice refused by Surrey County Council in 2020 but overturned on appeal by the then housing minister, Stuart Andrew in 2022.

A legal challenge by Waverley Borough Council and Protect Dunsfold, backed by the Good Law Project, was  dismissed at the High Court in 2023.

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