Rathlin Energy Limited has given notice to terminate its petroleum licence PL3/10, related to the Rathlin Basin in Northern Ireland. The licence, granted in 2011 for 5 years, will terminate on 14 January 2016.
The company has been involved in Northern Ireland for almost 12 years, believing there to be the potential for the discovery of oil and/or natural gas in the Rathlin Basin, Co Antrim. However, we have reached a point where there no longer remains sufficient time, under the initial phase of our Petroleum Licence, to complete the planned program of work. Against the background of severely depressed world oil prices we have had to make important strategic decisions, and in view of all the uncertainties we face in Northern Ireland, especially in terms of the unforeseeable delays to our future operations, we have concluded that we cannot justify further work on our Licence at this time.
The immediate cause for our decision is the length and complexity of the process for securing planning permission for the second exploration well we need to drill to evaluate the results of our first well at Ballinlea. That was drilled in 2008 and recovered crude oil, although not in commercial quantity. We submitted a planning application for the second well in June 2013 and, regrettably, we have no sense of knowing when there will be a determination of the application.
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