Oilex Limited announced on 23 December 2019 that it has entered into a binding term sheet with Burgate Exploration and Production Ltd to acquire 100% interest in licence P2446 (blocks 113/22a and 113/27a). The acreage contains the Doyle and Peel prospects. In addition to Oilex Limited has also entered into an exclusivity agreement for the potential acquisition of 100% interest in licence P2076 (block 113/27d) which contains the Castletown discovery. The acreage is on trend with the Rhyl and North Morecambe producing gas fields which produce from the Triassic Ormskirk sandstones.   The Doyle prospect is a tilted fault block set up against a north-south trending boundary fault of the Tynwald Fault Zone to the east. The fault is down-thrown to the east and the footwall of the Ormskirk Sandstone juxtaposes Mercia Mudstone forming a cross-fault seal. The Peel prospect is fault bounded to the east, also by the Tynwald Fault Zone with cross-seal from the Mercia Mudstone Group. To the south and south-west dykes have been emplaced which are thought to provide vertical seals. The amplitude of the Ormskirk reflector seen at Peel is similar to the Ryhl gas field so there is a possibility that this indicates gas charge.   The Castletown discovery was made with well 113/27-2 in 1988 which encountered gas in the Ormskirk sandstones, the St Bees Triassic sandstones and the Permian Collyhurst Sandstone. Recent 3D seismic indicates that the well was drilled significantly down flank of the crest and through a major fault and that a large gas accumulation may be proven up dip of 113/27-2. Oilex state that with Castletown having gas in multiple reservoirs the company will look to appraise the field with a view to develop Castletown at a later date.   Interest in the licences will be held solely by Oilex Limited once the deals are complete.
Oilex has agreed to take on P2446 (Doyle-Peel prospects) from Burgate E&P, as it has for adjacent P2076 (Castletown) from Burgate, Comtrack + Simwell Res. The licences cover 186 and 32.4km Â² resp. in the Morecambe Bay.