The UK government has developed a new type of license designed to increase exploration on the UK continental shelf. The new "Frontier" license allows companies to apply for relatively large amounts of acreage at reduced costs and gives them more time for exploration and development.

The license will be on offer in the forthcoming 22nd Offshore Licensing Round and will apply to blocks in the Atlantic Margin, West of the Shetland Isles.

"I am delighted to make yet another improvement to our licensing system by introducing the Frontier license," said UK Energy Minister Stephen Timms. "It is further proof of our commitment to innovate where possible and maximize the full potential of our UKCS reserves.

"By reducing the cost and extending the exploration time of the license we are sending out a strong signal to companies that exploration and development in challenging areas will be supported and encouraged by Government.

"Following on from the success of the Promote license in the 21st round of licensing which provided great incentives to the smaller prospectors, I believe that the Frontier license offers benefits to the more established players who are more likely to prospect in the new blocks.

"The new license will be made available in the 22nd offshore licensing round which I hope to announce in the coming weeks."

(02/06/04)