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UK Oil & Gas PLC (LON:UKOG) told investors it has received government approval for its proposed acquisition of a 50% stake in the Basur-Resan oil appraisal and exploration licence in Turkey.
The project spans some 305 square kilometres and has been estimated to contain some 37mln barrels of discovered recoverable oil.
Success in the appraisal project would potentially unlock rapid monetisation of the Discovery’s success case, UK Oil & Gas said.
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Accordingly, amidst delay to other UK based projects, the company said it has decided to focus its efforts on Turkey and the planned Basur-3 appraisal well.
“It is now evident that, in the success case, the Basur-Resan appraisal project has the potential to surpass the recoverable oil and gas volumes currently assigned by Xodus to our material UK Arreton and Loxley appraisal projects,” said Stephen Sanderson, UK Oil & Gas chief executive in a statement.
“It also has the advantage of lower drilling and operating costs and, facilitated by Turkish petroleum law, the possibility to rapidly monetise the success case within a year. For these reasons success could be transformational for the company.”
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