PENTEX, the oil exploration company that discovered 100 million barrels of crude oil underneath a farm in Avington last week, have outlined the future of the Matterley Farm site.
It was reported in last weekÕs Alton Herald that Pentex had made the UKÕs largest find of on-shore oil reserves in the last 20 years.
And the news that 100 million barrels of crude lay in oil-bearing rock 5,000 feet beneath the small Hampshire village, came as quite a shock to local residents. As Pentex were unavailable for comment at the time of going to press last week, the fears of locals were left unanswered.
Pentex has now outlined the future of the operation at the Matterley Farm site, in an effort to put local peopleÕs fears to rest.
PentexÕs press officer Helen Cree, explained: ÒA study is currently in progress to assess the viability of extracting the oil from the area. The future of the extraction operation will depend on the flow of the oil, and we wonÕt know the details of the oil flow or the development costs until the study is completed.
ÒIt is estimated that only around seven to 10 per cent of the oil at the site can be extracted. At todayÕs oil prices of around $30 per barrel, this equates to an extractable value of between $200 million and $300 million.
ÒThe details of the land leasing deal are confidential, so we canÕt say how much the landowner will make out of the deal.
Last week, The Herald spoke to Alison Matthews of the Itchen Valley Parish Council, who raised concerns over the effects on local roads, and the local landscape, especially considering that the farm is in East HampshireÕs designated Area of Outstanding Natural Beauty.
Mrs Cree responded: ÒPentex have been producing oil in this area for many years, and in all this time, our work has had very little effect on the local area.
ÒIf we prove that it is viable to extract the oil, then we anticipate between one and four tankers per day to be taking the oil from the site to refineries. The site lies very close to the A31 trunk road, so the tankers will not need to go through rural village roads.
ÒDuring the viability study, we will have a structure in place of no more than about 10 feet high, and then if we go ahead with the extraction, the equipment used will protrude no more than about four feet from the ground. With low- level lighting, there should be no significant effect on the landscape of the area.Ó
Mrs Cree said: ÒRussell Jordan, a Pentex director, has been in touch with both Mrs Matthews and members of the Winchester City Council to brief them on the situation, and has offered to attend a meeting to explain the situation more fully.Ó
She added: ÒAlthough this is the largest on-shore find of oil in the UK for 20 years, in the scheme of things, it isnÕt a very big find at all. When you compare it to the reserves that are found off-shore, then itÕs a drop in the ocean.Ó