14th Round Licences
Every few years, the Government issues PEDL ‘s(Petroleum Exploration and Development Licenses) to UK onshore oil and gas operators. These licenses give applicants the ability to explore for oil or gas in 10km by 10km blocks. What it doesn’t do is give those applicants the right to drill – this can only be achieved once approvals have been given by various regulators and local authorities, which can take some time to achieve.
In essence, being offered a license obliges the operator to carry out research in order to determine whether there are hydrocarbons present. Operators will look for all types of oil and gas – this is not a license to carry out hydraulic fracturing.
In December of 2015 the Government announced the results of the 14th round of license block awards which resulted in 159 new blocks being offered under 93 new licenses, adding to the 137 licenses and 370 blocks which have been awarded during previous rounds.
IGas were pleased to announce that they were offered a total of 17 blocks in the 14th round, representing a total additional gross area of c. 270,000 acres of which IGas net interest is c. 162,000 acres. This represents an acreage increase of around 25%.
To see the full IGas press release click here