TIDMIOG
RNS Number : 1171E
Independent Oil & Gas PLC
02 July 2019
2 July 2019
Independent Oil & Gas plc
Corporate Update
Independent Oil and Gas plc ("IOG" or the "Company"), the
development and production company focused on becoming a
substantial UK gas producer, is pleased to provide an update on the
Harvey appraisal well and other key corporate activities.
Harvey Appraisal Well Update
The Company's preparations to drill the Harvey appraisal well
with the Maersk Resilient jack-up rig are now well advanced. The
Maersk Resilient is a modern, high-spec rig with a strong operating
history and an excellent safety record. It is currently on contract
with another operator, drilling a well in the Central UK North Sea
which is expected to conclude in late July. Allowing for
mobilisation to the Southern North Sea, IOG therefore currently
expects the Maersk Resilient to be on location at Harvey by the end
of July. In the success case, the well is forecast to take up to
two months.
In the meantime, IOG and its designated Well Operator, Fraser
Well Management, are completing final procurement, regulatory and
other preparatory processes ahead of the well, all of which are
proceeding on schedule.
Harvey is centrally located within IOG's asset portfolio in UK
Southern North Sea Blocks 48/23c, 48/24a, and 48/24b, close to the
IOG owned and proven 550 MMcfd capacity Thames Pipeline. The
primary objective of the Harvey appraisal well is to confirm gas
volumes which management estimate at 85/129/199 BCF Prospective
Resources in the Low/Best/High case, with a 63% Geological Chance
of Success(1) and secondly to demonstrate reservoir deliverability.
If successfully appraised, the additional scale and synergies of a
Harvey development could substantially enhance the portfolio's
overall value and returns. A detailed presentation about the Harvey
opportunity can be found on the IOG website.
Farm-Out Process Update
IOG has continued to work intensively on the farm-out process
for its Core Project, which comprises 410 BCF(2), (3) of 2P+2C
reserves and resources across six discovered Southern North Sea
(SNS) gas fields. This process has progressed substantially and the
Company aims to be in a position to release further updates during
July. The farm-out is intended to provide a significant amount of
development funding and represent a major milestone towards Final
Investment Decision (FID) on Phase 1 of the Core Project, which is
planned at the earliest feasible time.
Thames Reception Facilities Acquisition Update
In addition, IOG remains in advanced exclusive discussions to
acquire the Thames Reception Facilities at the Bacton Gas Terminal
from its joint owners, the Thames Partners. As previously
indicated, the process of agreeing the required documentation has
highlighted certain legal complexities relating to land title which
have required co-ordinated input from several parties. IOG has been
working constructively with the Thames partners in a dedicated
process and expects to resolve these outstanding issues and sign
the agreement at the earliest feasible time.
Andrew Hockey, CEO of IOG, commented:
"We are pleased to confirm that we are on schedule to drill our
exciting appraisal well at Harvey. The well is a major catalyst for
IOG, potentially proving up a substantial, high-quality reservoir
in the heart of our core area, close to our fully-owned Thames
Pipeline. Final preparations are underway and the summer drilling
slot should help to minimise weather-related operational risks in
executing the well.
Needless to say, our primary focus remains to progress the
funding of our Core Project to FID and in particular the farm-out
process. We are highly motivated to deliver a farm-out transaction
that can enable us to progress to FID this summer.
We look forward to updating our shareholders on progress on
these key milestones for the Company."
Enquiries:
Independent Oil and Gas plc +44 (0) 20 3879 0510
Andrew Hockey (CEO)
James Chance (CFO)
Rupert Newall (Head of Corporate Finance)
finnCap Ltd +44 (0) 20 7220 0500
Christopher Raggett, Anthony Adams (Corporate Finance)
Camille Gochez (Corporate Broking)
Peel Hunt LLP +44 (0) 20 7418 8900
Richard Crichton
David McKeown
Vigo Communications +44 (0) 20 7390 0230
Patrick d'Ancona
Chris McMahon
Simon Woods
About Independent Oil and Gas:
IOG owns substantial low risk, high value gas reserves in the UK
Southern North Sea. The Company is targeting a 2P peak production
rate of 146 MMCF/d (c. 25,000 Boe/d) from its substantial Core
Project (2P gas Reserves of 302 BCF(2) + 2C gas Contingent
Resources of 108 BCF(3)) via an efficient hub strategy. In addition
to the independently verified 2P reserves at Blythe, Elgood,
Southwark, Nailsworth and Elland and 2C Contingent Resources at
Goddard, IOG also has independently verified best estimate unrisked
prospective gas resources of 202 BCF(1),(3) in Harvey and Goddard.
Alongside this IOG continues to pursue value accretive acquisitions
to generate significant shareholder returns. All IOG's licences and
the Thames Pipeline are owned 100% and operated by IOG.
Competent Person's Statement
In accordance with the AIM Note for Mining and Oil and Gas
Companies, IOG discloses that Andrew Hockey, IOG's CEO, is the
qualified person that has reviewed the technical information
contained in this document. Andrew Hockey has an MSc in Petroleum
Geology and has been a member of the Petroleum Exploration Society
of Great Britain since 1983. He has over 35 years' operating
experience in the upstream oil and gas industry. Andrew Hockey
consents to the inclusion of the information in the form and
context in which it appears.
(1)Updated management estimates based on interpretation and
mapping of 3D seismic data reprocessed to Pre-Stack Depth Migration
(PSDM) in 2018, subsequent to ERC Equipoise's 2017 Competent
Persons Report
(2)ERC Equipoise Competent Persons Report: October 2017,
adjusted by Management to account for updated project timing and
compression
(3)ERC Equipoise Competent Persons Report: October 2018
Certain information communicated in this announcement was, prior
to its publication, inside information for the purposes of Article
7 of Regulation 596/2014.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCBCGDRXBGBGCB
(END) Dow Jones Newswires
July 02, 2019 02:00 ET (06:00 GMT)
Iog (LSE:IOG)
Historical Stock Chart
From Apr 2024 to May 2024
Iog (LSE:IOG)
Historical Stock Chart
From May 2023 to May 2024