The extraction of gas from the Manx seabed has moved a step closer as Crogga has appointed a contract operator for its appraisal well.

Crogga, which has the licence to investigate whether it would be economic to extract gas, has also announced it will be offering up a chance for residents of the Isle of Man to invest in the company.

If everything goes as it plans, the company wants to drill its first well in the autumn, with a view to the gas coming online by the end of 2026.

Crogga said it has appointed THREE60 Energy to drill the Crogga Independence appraisal well (112/25a-2) on the Crogga Gas Field, which it said has ‘significant drilling experience in the East Irish Sea with an excellent safety record’.

A spokesman said: ‘Crogga Limited has completed its pre-drill evaluation of the Crogga gas field and the well will spud (start) as soon as permitting is complete.

;The objective is to establish commercial flow rates from the conventional Permian Collyhurst Sandstone reservoir. In the success case, Crogga could become one of the largest field developments in the East Irish Sea, comparable in size to the Douglas and Hamilton Fields in the Liverpool Bay Development.

‘If commercial production rates are established and the field is as large as expected, Crogga gas will provide energy independence and a significant increase in GDP for the Isle of Man.

‘Revenues will be generated at no cost or financial risk to Isle of Man taxpayers. Crogga will cap gas prices at 80p/therm for Manx domestic gas sales and local natural gas production has a smaller carbon footprint than imported gas. It is the fuel of choice to enable the Island to transition to a zero-carbon economy.’

The carbon claims of Crogga has been criticised by politicians and pressure groups on the island who are opposed to the removal of fossil fuels from Manx seas.

The size of the field which Crogga wants to drill into.

Crogga has also announced it is opening up a share offering to islanders, as it bids to raise of £32.5million to cover well costs.

While most of the investment it is seeking is from companies, Crogga said it ‘has always been mindful that, at the right moment, it wishes to provide local investors with the opportunity to participate’.

Subscriptions will be accepted on a first come, first served basis. THREE60 Energy has converted part of its payment for operating the Independence well into shares in Crogga Limited.

You can find out more about the offering memorandum, as well as the risks of investing, by going to https://www.crogga.im.

Chief executive Richard Hubbard said: ‘A corporate update will follow when the IWR closes on February 24 and a drilling rig contracted.

‘If the 2023 Crogga Independence well is successful, 3D seismic and further drilling will rapidly follow to develop the Crogga field with first production of natural gas as early as 2026.’