Independent Oil & Gas PLC Award of new licence (0569L)
July 14 2017 - 2:00AM
UK Regulatory
TIDMIOG
RNS Number : 0569L
Independent Oil & Gas PLC
14 July 2017
14 July 2017
Independent Oil and Gas plc
Award of new licence
Independent Oil and Gas plc ("IOG" or the "Company") (AIM:
IOG.L), the North Sea development and production focused Oil and
Gas Company, is pleased to announce that it has been awarded a new
licence by the UK Oil and Gas Authority ("OGA") in the 2016
Supplementary Offshore Oil and Gas Licensing Round, comprising
Block 48/25a. The licence includes the western part of the Vulcan
North West discovery that extends into 48/25a and also includes the
Hogsback, Hobson and Goacher prospects.
Vulcan North West
Vulcan North West is a key part of the Company's Vulcan
Satellites hub development. It is a discovery with independently
estimated P50 gas initially in place of 215 BCF and 2C recoverable
resources of 131 BCF. 18% of the discovery is estimated to be in
the new licence 48/25a, so the award of this licence secures 24 BCF
of 2C resources for the Company.
The Vulcan Satellites field development planning is progressing
very well with all three fields expected to be tied back to the
Thames Pipeline which is in the process of being acquired and
recommissioned by the Company.
The new licence will be included in the Field Development Plan
("FDP") that is currently being drafted and will also be included
in the new Competent Person Report ("CPR") that is being prepared
by ERC Equipoise. The CPR for the Blythe hub, consisting of the
Blythe and Elgood fields, should be received within the coming
weeks. The CPR for the Vulcan Satellites is targeted by the end of
the third quarter.
Hogsback, Hobson and Goacher
The Hogsback Leman gas prospect is a tilted fault block to the
west of Vulcan North West. It is on-trend and up-dip from the
48/24b-2 gas discovery drilled by Hess in 1990. It is estimated by
the Company to have a technical chance of success of 44% with a
most likely gas in place of 30 BCF and most likely resources of 18
BCF of which 96% is on block.
Hobson is an oil discovery but currently there is significant
uncertainty regarding its size with minimum, most likely and
maximum oil in place estimates of 1 MMBbls, 2 MMBbls, 18 MMBbls
respectively. 59% of the Hobson discovery is on the newly awarded
block. Should any decision be taken to drill, Hogsback and Hobson
could be appraised with a single well.
Goacher is a Leman gas prospect which is a relatively low relief
faulted anticline with a most likely gas in place of 71 BCF. The
Company currently estimates that the technical chance of success is
29% with 36% on the newly awarded block.
Mark Routh, CEO and Interim Chairman of IOG commented:
"We are pleased to have been awarded this licence by the OGA in
the Supplementary Licensing Round which secures and adds further
gas resources to our dual gas hub strategy. The award is further
endorsement of our technical and environmental competencies as a
SNS development operator and extends our licence coverage in this
core strategic region for IOG.
Our SNS field development work continues to progress very well
in the meantime. Static reservoir models have now been built for
our entire SNS portfolio and dynamic reservoir modelling is also
almost complete. This will provide our own best estimates of the
recoverable reserves and production profiles for both hubs. The IOG
team remains very focused on the many ongoing development
activities, with technical subsurface, well engineering, pipeline
and facilities engineering, environmental assessments, survey
preparation and intelligent pigging preparation work all in
progress alongside the financing, commercial and gas offtake
negotiations. We are on track to submit the Blythe/Elgood FDP very
soon and the Vulcan Satellites FDP in 3Q 2017 once the reservoir
modelling work is finished. We expect to be releasing further news
as each stage of the dual gas hub strategy reaches each significant
milestone."
-ENDS-
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
Enquiries:
Independent Oil and Gas plc +44 (0) 20 3879
Mark Routh (CEO) 0510
finnCap Ltd
Christopher Raggett / Anthony
Adams +44 (0) 20 7220
(Corporate Finance) 0500
Camarco +44 (0) 20 3757
Georgia Edmonds / Tom Huddart 4980
Notes
About Independent Oil and Gas:
IOG owns substantial low risk, high value gas resources in the
UK Southern North Sea. The Company is targeting 170 MMcfd gas
production from its current portfolio of 500 BCF (88 MMBoe) via an
efficient gas hub strategy. Alongside this it continues to pursue
value accretive acquisitions, to generate significant shareholder
returns. All of IOG's licences are owned 100% and operated by
IOG.
Further information can be found on
www.independentoilandgas.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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