Oil and gas exploration company IGas Energy said on July 4 it plans to drill up to two new exploratory oil wells in the Weald Basin in southern England.
The company also said it was unable to finalize a deal with Onshore Petroleum Ltd. to sell its non-core assets, which will now remain with IGas.
IGas produces around 2,200 barrels of oil equivalent a day from more than 100 sites across Britain. The Weald Basin is the source of around half of the company’s current production.
The initial well will explore the resource potential of the Portland Sandstones and the Kimmeridge Micrites, which it estimated had hydrocarbon volumes in place of about 300 million barrels.
The company will shortly start discussions with Surrey County Council and other stakeholders before submitting a planning application.
The company also said it expects to generate substantial free cash flow in 2018, allowing it to initiate a dividend in the first-quarter of 2019.
Cyprus wants to develop offshore gas reserves as a potential source of revenue, Reuters said.
The new platform will replace a similar one that was damaged by a large fire in 2016 that killed three workers.