US Oil & Gas PLC (LON:USOP) has told investors that it is expecting to land a permit for well drilling at the Eblana project in eight to twelve weeks’ time.
The oil and gas explorer, in a statement, said it is positioned operationally to drill on the award of the permit.
“For some time, the company has been fully prepared to drill Eblana-9 as soon as the necessary permits are awarded,” chief executive Brian McDonnell said in an operations update.
“The regulatory authorities have now communicated their estimate that, subject to no unexpected issues arising, a permit to drill may be awarded within 8-12 weeks. The company very much appreciates this update, as it considerably reduces the ongoing uncertainty in our drilling timeline. We anticipate very little delay between the award of a permit and the start of Eblana-9 operations.”
McDonnell added: “While progress towards a drilling permit has been slower than expected, everyone involved, myself, the board and our technical team, remain extremely excited about the prospects for the Eblana-9 drill.
“Our two control wells, Eblana-1 and Eblana-9 along with VSP and other data have given us a picture of the target structure far more complete than anything we have had before. As always, the drill bit will decide, but we believe optimism regarding a commercial well is fully justified.”
The USOP boss also commented on the site reclamation works at prior well locations.
“While awaiting progress on our Eblana-9 permit application, the company has reclaimed to the highest standards its existing three drill sites, restoring the areas to their original landforms in accordance with our statutory and moral obligations,” McDonnell said.
“The work was carried out thoroughly and cost-effectively and demonstrates that Major Oil is a company that fulfils its permit conditions and is proactive and responsible in protecting the environment in which it operates. These reclamation operations also recoup for the company significant funds previously lodged as bonds,” he added.