LONDON (ShareCast) - (Sharecast News) - Andalas Energy and Power reported on Tuesday that Corallian Energy, the exploration operator for licence P1918, has informed the joint venture partners that the Department for Business, Energy and Industrial Strategy, Offshore Petroleum Regulator for Environment and Decommissioning (OPRED) has advised the Oil and Gas Authority of its in-principle agreement to the issue of the relevant consent for the Colter well, in which Andalas has an 8% interest.
The AIM-traded firm said there were several regulatory approvals and notifications still required before the consenting process was completed for the work programme.

When all the necessary approvals had been obtained, Corallian reportedly expected to commence a two-well work programme, with the drilling of the Wick well, in which Andalas does not have an interest, expected to begin during December.

Following completion of the Wick well, the rig would be mobilised from the Moray Firth to the English Channel to drill the Colter well.

"We are pleased with the continued progress of the operator towards the commencement of the proposed well, which follows today's announcement and the recent announcement of the contracting of the Ensco-72 rig to execute the Wick and Colter drilling programme," said Andalas chief executive officer Simon Gorringe.

"The drilling of the Colter well will expose Andalas shareholders to an exciting period of drilling activity, whilst we continue to work with our partners to complete the acquisition of Bunga Mas and to provide updates on the Badger licence.

"I look forward to keeping the market informed as we continue to progress our portfolio."

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