Solo Oil has been informed by Horse Hill Developments Ltd that the exploration stage of the Horse Hill PEDL137 licence, in which the Company has a 6.5% interest, has been extended for a further year by the Oil & Gas Authority (formerly the Department of Energy and Climate Change). The exploration stage of the PEDL137 licence has now been extended to 30 September 2016.
Subject to the results of an intended Horse Hill-1 well flow test later in 2015, for which regulatory approval has been requested, the Company has been informed that HHDL will seek, in conjunction with the OGA and other regulators, to move the PEDL137 licence into the Production Period, via, inter alia, the submission of a Field Development Plan to the OGA. The PEDL137 licence provides for a potential Production Period of 19 years. HHDL has informed Solo that its application for the flow test is based on the 'roadmap' document published by the Department of Energy and Climate Change (now the OGA) for onshore oil and gas exploration in the UK.