Terrain owns a 27.8% interest in the Dukes Wood and Kirklington licences in the East Midlands. The wells have been shut in for several years due to water cut and scaling issues making their operation uneconomical at recent oil prices. The operator has been investigating options for repurposing the wells for geothermal heat use which, if suitable, will enable the licence partners to develop a potential source of long term revenue, provide clear ESG benefits and delay or defer the full abandonment and restoration of the wells.

The Eakring area has long been recognised as having an anomalously high geothermal gradient. Initial high level analysis has shown the bottom hole temperatures at both the Dukes Wood and Kirklington wells are sufficient for multiple industrial and agricultural heating uses with a number of potential end users identified within the vicinity of each site. These income streams could provide a medium to long-term commercial return.

The opportunity is being further evaluated from technical, commercial and regulatory perspectives.