United Oil & Gas Plc said Aug.23 it has accepted the formal offer from the Oil and Gas Authority confirming the award of Blocks 15/18d and 15/19b (License P2366), with the license term beginning October 1, 2018.

The two highly prospective blocks in the Central North Sea cover an area of 13.6 sq km (5.25 sq miles) and are close to the substantial Piper, MacCulloch and Dumbarton/Donan oil fields and include the Palaeocene Crown Oil Discovery, which could contain up to 16 million barrels (MMbbl) of recoverable oil.

United’s internal estimates suggest a range in recoverable volumes of 4 MMbbl to 16 MMbbl of oil, with mid-case estimates of about 9 MMbbls for the Crown Oil Discovery, which was made by ConocoPhillips (NYSE: COP) in 1998 in well 15/19-9. The potential of the license is underlined by the interest already received from prospective farm-in partners, and the company will consider all options available in order to progress the work program as rapidly as possible. The directors believe this interest reflects not only the quality of Blocks 15/18d and 15/19b, but also the uptick in activity and interest in the Central North Sea.

"A number of factors including the existing multimillion barrel oil discovery, multiple leads and targets, an excellent location close to substantial oil fields, and the attractive cost profile of exploration and production in the North Sea all culminate to position these licenses as compelling investment opportunities,” Brian Larkin, United Oil & Gas CEO, said. “Confirmation of the award enables us to pursue farm-out discussions with potential partners with whom we can work to take these licenses forward.”