- Oil company UK Oil & Gas welcomed the publication of an analysis of the area of the Loxley Portland gas discovery in the UK, which indicated it contained 'materially significant' gas volumes.

The report from Xodus Group detailed that the area of the Loxley Portland gas discovery lying within UK Oil & Gas's PEDL234 licence in West Sussex.

It was interpreted to contain a significant mean case gross gas initially in place (GIIP) of 49bn cubic feet (bcf).

The portion of GIIP estimated to be recoverable to surface via any future production, the mean gross recoverable resource, was cited as 34 bcf, representing an estimated recovery factor of around 70%.

Reported high case net PEDL234 GIIP and estimated high case recoverable resources were 76 bcf and 54 bcf, respectively.

'In terms of recoverable gas resources, the calculated figures places Loxley as one of the largest gas accumulations discovered and flow tested in the UK onshore,' the company said.

'If proven by future production, the calculated gross mean recoverable resources would place Loxley second after the Saltfleetby gas field, the UK onshore's largest gas field to date, which produced approximately 73 bcf.'

'These results further underline the company's view that the 48 square kilometre Loxley geologic structure contains materially significant gas volumes, which in a success case of around 4-5 bcf/year, on an energy equivalent basis, could have the capacity to power around 200,000 homes per year.'

'In the event that planning consent for the company's appraisal and long-term testing programme is granted, and Covid-19 permitting, the company seeks to drill the Loxley-1 well in the second half of 2021.

At 9:24am: [LON:UKOG] UK Oil Gas Investments Plc share price was +0.01p at 0.19p

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