Three Pedl licenses in the FFD area dropped!

By July 1, 2016 News No Comments

News released on June 30th 2016 on the governments Oil and gas: onshore exploration and production web page …

https://www.gov.uk/guidance/oil-and-gas-onshore-exploration-and-production

Scroll down this linked page to the paragraph titled Licencing, and theres a link to a spreadsheet dated 30th June 2016 which contains the information
(will start a download of a spreadsheet)
 
O&G have dropped IGas PEDLs 173, 174, 178, 179, 185, 186, 187 and 207 as at 30/06/16.
 

Above is a map showing pedl license numbers in this region, which looks like a large chunk of the Dee area is now frack free!

What is a PEDL? Petroleum Exploration and Development Licenses are areas of land, which has been leased by the Oil and Gas Authority to a particular drilling company. So, if a PEDL is held by Igas, only Igas can drill for gas in that license area. A company cannot drill in an area unless they have secured the PEDL for it.
A drilling company must have the PEDL license for the area to drill in AND then get planning permission from the local authority to drill in their exact local site, in conjunction with an Environment agency permit to carry out whatever work they are planning.

At the moment this news means that the PEDL licenses have expired and Igas have not extended them. The licenses will now return to the Oil and Gas Authority (OGA) – No company will have the right to drill – and when there is another round of sell-offs, they could be included along with the newly created PEDL licenses – another company could buy it up in the future?


Pedl  184 is Ellesmere Port and Wirral, it says more seismic testing by 2019 and at least one new borehole by 2021.
Pedl 185 is Dudleston/Shocklach/Penley and has ended
Pedl 187 is Wrexham and the license has ended.
Pedl 188 is Farndon and is still live – and expecting seismic testing by June 2020 with at least another well to be drilled after that.
PEDL189 (which is Upton/Chester)extended 2 years to 30/06/18
Pedl 190 is Ince/Helsby and once their seismic data is analysed by June 2017 at least another well is expected to follow.
 

Here is  the relevant information from the spreadsheet. (click to enlarge)

 

license status June30th

Further Information –
A revised look at the PEDLs within the FFD area can be viewed here

The terms of taking on a Pedl license are set out on this government website and have been copied below – please note that the guidelines set out above for drilling one well etc are a minimum that the company has to do in order to fulfil the licence.

“Terms

Seaward Production Licences, and Petroleum Exploration and Development Licences, are valid for a sequence of periods, called terms. These are designed to comprise the typical life cycle of a field: exploration, appraisal, production. Each licence will expire automatically at the end of each term, unless the licensee has sufficiently progressed to warrant a chance to move into the next term.

The initial term is usually an exploration period. For Seaward Production Licences this is usually set at 4 years, although it can be longer for ‘frontier’ licences. For Petroleum Exploration and Development Licences, the intial term is set at 6 years and carries a work programme of exploration activity that the OGA and the licensee will have agreed as part of the application process. This licence will expire at the end of the initial term unless the licensee has completed the work programme. At this time the licensee must also relinquish a fixed amount of acreage (usually 50%).

The second term is intended for appraisal and development. It is 4 years for Seaward Production Licences and five for Petroleum Exploration and Development Licences. Both licences will expire at the end of the second term unless the Secretary of State has approved a development plan.

The third term is intended for production. It is 18 years for Seaward Production Licences and 20 for Petroleum Exploration and Development Licences. The Secretary of State has the discretion to extend the term if production is continuing, but the OGA reserves the right to reconsider the provisions of the licence before doing so – especially the acreage and rentals.

All the qualifying criteria for continuation into a following term of the licensee define the minimum amount of progress that the licensee must make. There is no suggestion that they set maximum amounts of progress that the licensee is allowed to make, or that they limit the exercise of the licensee’s rights.”

Map showing the relinquished PEDL areas in context, plus seismic surveyed lines