A company searching for gas off the east coast of the Isle of Man hopes to begin drilling an appraisal well late next year, after a series of delays.

Crogga Limited was granted a Seaward Production Innovate license in October 2018, which has seen several extensions as negotiations to modify that license continued.

The Department of Infrastructure has said those discussions were now in their “final stages” and a seven-week extension had been agreed to cover “a small number of outstanding issues”.

Richard Hubbard, Crogga’s chief executive, said the long-running negotiation was “close to a successful conclusion” and the company hoped to drill an appraisal well in late 2025 or early 2026.

Under the current terms of the agreement, before drilling can begin, the company must conduct a 3D seismic survey.

But a requested variance would allow Crogga to drill an appraisal well based on data from 2D seismic surveys, so the company understands how much gas is under the seabed 17 kilometers (10.5 miles) from Maughold Head.

Hubbard said the next steps were for the Isle of Man government to “enact drilling regulations” necessary to allow an oil rig to operate in Manx waters.

This would be needed to bring the Isle of Man gas field to full development if the appraisal well determines the site is commercial, he said.

If the project moves toward “full field development,” first gas was planned for 2029/30, Hubbard continued.

The company is also looking to drill an appraisal well 19 kilometers (12 miles) off the coast of Blackpool, and the rig would be used there first before moving it to drill in Manx waters, he said.

The license was last extended in August for three monthsbut has undergone several extensions since 2018.

The Department of Infrastructure said the additional seven-week period would allow the two sides to “finalize matters”.