Gas exploration drilling off Isle of Man potentially starting in late 2025

Crogga Limited, a firm engaged in gas exploration off the Isle of Man’s east coast, anticipates commencing the drilling of an appraisal well in late 2025, following numerous postponements. The company received a Seaward Production Innovate License in October 2018, which has undergone several extensions due to ongoing discussions aimed at modifying its terms. According to the Department of Infrastructure, these negotiations are currently in their “closing stages,” with a seven-week extension having been agreed upon to address “a small number of outstanding issues.” Richard Hubbard, Crogga’s Chief Executive, stated that the protracted negotiation was “nearing a successful conclusion,” and the company aims to drill an appraisal well either in late 2025 or early 2026. The existing agreement stipulates that a 3D seismic survey must be completed before drilling operations can commence. However, a proposed modification to the agreement would permit Crogga to proceed with drilling an appraisal well using 2D seismic survey data. This would enable the firm to assess the volume of gas located beneath the seabed, 17km (10.5 miles) off Maughold Head. Mr. Hubbard indicated that the subsequent phase involves the Isle of Man government needing to “enact drilling regulations,” which are essential for an oil rig to operate within Manx waters. He added that these regulations would be necessary to advance the Isle of Man gas field into full field development, should the appraisal well determine the site to be commercially viable. Should the project progress to “full field development,” the initial gas extraction is projected for 2029/30, Mr. Hubbard further stated. The company also plans to drill an appraisal well 19 km (12 miles) off the coast of Blackpool, with the drilling rig intended for use at that location initially before being relocated to Manx waters, he mentioned. The license received its most recent extension in August for a period of three months, though it has been subject to several extensions since 2018. The Department of Infrastructure indicated that the supplementary seven-week timeframe would enable both involved parties “to finalise matters.”