📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

British oil firm rows back on sizing up English countryside find

Published 15/04/2015, 08:06
© Reuters.  British oil firm rows back on sizing up English countryside find
BP
-
PRIMP
-
ALBA
-
UKOGa
-
SCIR
-

LONDON (Reuters) - The small British oil firm that caused a commotion in the media when it said it had found a possible world class oil resource in the southern English countryside, conceded on Wednesday that it was not in a position to properly size it up.

Headlines like "Britain's Dallas" featured in the national press last week when Explorer UK Oil & Gas Investments (UKOG) (L:UKOGa) said last week that up to 100 billion barrels of oil could lie below the green fields around Gatwick Airport.

UKOG, whose shares soared 200 percent in the wake of the news, said in a "clarification of press comment" on Wednesday that its exploration related only to its licence. The overall forecast of 100 billion barrels appeared to have been an estimate for the whole Weald Basin area.

"The company has not undertaken work outside of its licence areas sufficient to comment on the possible oil in place in the whole of the Weald Basin," it said.

Industry analysts had last week received UKOG's news with a note of caution, pointing out that Kuwait's proved reserves amount to 101.5 billion barrels, according to BP (LONDON:BP)'s annual statistics, while Britain has extracted 45 billion barrels from the North Sea since the 1970s.

In its original statement, UKOG had already cautioned that only between 3 and 15 percent of the oil on its licence could be recovered.

UKOG is the main investor in the Horse Hill project, while other stakeholders include Stellar Resources (L:STGS), Solo Oil (L:SOLO) and Alba Mineral Resources (L:ALBA).

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.