Oilex plans to relinquish its UK P2446 exploration licence, which incorporates the Doyle and Peel structures in the UK East Irish Sea.

Following an unsuccessful request to the UK Oil and Gas Authority to extend the initial term of the P2446 exploration licence, the Company has decided to relinquish the licence. The extension was requested due to Covid-19 related delays in completing the initial phase work programme. Remaining technical uncertainties and the Company's new strategy to focus on mature gas field acquisitions and carbon capture and storage (CCS) opportunities were the main drivers behind the Company's decision.

Oilex's Chief Executive Officer, Roland Wessel said:
"Regarding the Cambay field, and following the extended hiatus in production, the Company is focussed on the resumption of both production and field development activities to exploit the 926 BCF of contingent gas resources in a market of strengthening gas prices and demand. Subject to GoI ratification, the Company now has a 100% working interest in the Cambay field following the Acquisition with a commensurate increase in net contingent resources.

The decision to relinquish UK exploration licence P2446 is in line with Oilex's new strategy to focus on mature gas field acquisitions and CCS opportunities. The Company is committed to achieving carbon-neutral gas production in the UK via the implementation of CCS projects, which will be leveraged by the management team's experience and expertise with respect to gas storage in depleted reservoirs."