TIDMIOG
RNS Number : 5044R
Independent Oil & Gas PLC
12 December 2016
12 December 2016
Independent Oil and Gas plc
Blythe FDP Submission
Independent Oil and Gas plc ("IOG" or the "Company"), the
development and production focused Oil and Gas Company, is pleased
to announce that it has submitted the Blythe Field Development Plan
("FDP") in draft format to the Oil and Gas Authority ("OGA").
Blythe FDP Submission
The Blythe gas field, which is 100% owned and operated by IOG,
is located in the Southern North Sea close to existing
infrastructure and other IOG-owned licences. It contains
independently verified 2P reserves of 34.3 billion cubic feet
("BCF") (6.1 million barrels of oil equivalent, ("MMBoe")) and
needs no further appraisal. First gas is expected in the second
half of 2018, subject to completion of the development funding
Submission of the draft FDP is a key milestone for the Company
as it gears up its capabilities for the field development. Reaching
this milestone by the end of 2016 was also a requirement of the
recent licence extension.
Blythe is particularly important to the Company because it is
expected to produce first revenues from its current portfolio of
assets. Furthermore, the planned gas hub around Blythe is expected
to include the nearby Elgood discovery as a tie-back to the same
infrastructure. IOG is in exclusive talks to secure the main export
route for all of its SNS fields, including the 100%-owned and
operated Vulcan Satellite fields.
Mark Routh, CEO of IOG commented:
"We are pleased to deliver on our commitment to submit the draft
Blythe FDP by year end. Blythe is at the heart of our first gas hub
and is therefore of great strategic value to us. We continue to
work hard to maximise the gas that can be commercially developed
from our core Southern North Sea area, including the Blythe and
Vulcan Satellites hubs. We are working with some well-established
parties on the financing of these hubs and are pleased with
progress to date."
ENDS
Enquiries:
Independent Oil and Gas plc
Mark Routh (CEO) +44 (0) 20 3879
Peter Young (CFO) 0510
finnCap Ltd
Matt Goode/Christopher Raggett +44 (0) 20 7220
(Corporate Finance) 0500
Camarco +44 (0) 20 3757
Billy Clegg / Georgia Edmonds 4980
Notes
About Independent Oil and Gas:
IOG is an oil and gas company with established assets in the UK
North Sea. The company's strategy is to deliver near term
development and production assets in North West Europe, through its
extensive technical and commercial expertise, whilst maintaining
some exposure to exploration upside. The company is looking to grow
both organically and through acquisition.
All of IOG's licences are owned 100% and operated by IOG.
Further information can be found on
www.independentoilandgas.com
About the Vulcan Satellites:
The Vulcan Satellites consist of three fields, Vulcan East,
Vulcan North West and Vulcan South, which hold independently
estimated 2C resources of 77.4 BCF, 131.3 BCF and 112.0 BCF
respectively, 320.7BCF collectively. These fields lie in Block
49/21a (Licence P039), Block 49/21d (Licence P2122), Block 48/25b
(Licence P130) and Block 49/21c (Licence P1915) in the UK sector of
the Southern North Sea. They lie approximately 30-45km east of
IOG's 100%-owned Blythe field and are considered ready for
development with no further appraisal required. IOG is progressing
exclusive discussions regarding an export route for these fields
and once that is in place the Company will prepare a Field
Development Plan. IOG has assumed liability for decommissioning a
suspended well on Vulcan East, which in April 2015 was
independently estimated to cost GBP3.0 million as part of a
development campaign, based on prevailing rig rates at that
time.
About the Blythe Hub:
The Blythe hub licences comprise Blythe, Elgood, Hambleton,
Truman and Harvey.
About Blythe:
The Blythe gas discovery in the Rotliegendes Leman formation
straddles Blocks 48/22b and 48/23a in the Southern North Sea in
licence P1736. The Blythe Leman reservoir needs no further
appraisal and has independently verified 2P reserves of 34.3 BCF
(6.1 MMBoe). (Source: ERC Equipoise Competent Person's Report
("CPR") dated September 2013.)
Gas tested to surface from three separate intervals in the
Carboniferous beneath the Blythe Leman gas discovery from one of
the Blythe discovery wells, 48/23-3 drilled by Arco in 1987. The
maximum rate achieved was 0.9 MMcfd from an unstimulated vertical
test. (Source: End of well report 48/23-3 - November 1987.) This
was deemed uncommercial at the time, before the advent of
horizontal multi-fracture stimulated wells. Further technical work
including seismic reprocessing and remapping needs to be completed
to evaluate this potential resource to refine the gas-in-place
estimates which are between 70 BCF and 310 BCF. (Source: Tullow Oil
48/23a Relinquishment Report - May 2009.)
Oil has flowed to surface from the naturally fractured Zechstein
Carbonates in the Hauptdolomit formation above the Blythe Leman gas
discovery from two wells. Well 48/22-1 drilled by Burmah in 1966
flowed 39deg API oil at rates up to 2,000 barrels per day (Source:
Composite well log 48/22-1 - October 1966) and well 48/23-3 drilled
by Arco in 1987 at flowed 38deg API oil at a maximum rate of 1,128
barrels of oil a day. (Source: End of well report 48/23-3 -
November 1987.) The extent of the structure and potential oil
resources in the Hauptdolomit remains unknown. Previous estimates
considered that the mapped closure was probably small. Oil-in-place
has been estimated between 2 MMBbls and 4 MMBbls. (Source: Tullow
Oil 48/23a Relinquishment Report - May 2009.) Further evaluation
and re-mapping is continuing now that a development will proceed on
the main Blythe gas discovery.
About Truman and Harvey:
IOG has a 100% working interest in licence P2085 awarded in the
27th licensing round to the east of Blythe containing the Truman
prospect and Harvey discovery (Blocks 48/23c & 48/24b). IOG
estimates potential resources in this licence of 16 BCF or 3.1
MMBoe. These 100%-owned fields have potential resources that could
be tied back to nearby infrastructure being developed for the
Blythe development.
About Elgood and Hambleton:
IOG has a 100% working interest in a licence awarded in the 28th
licensing round to the west of Blythe containing the Elgood
discovery (Block 48/22c, licence P2260). Elgood was drilled by
Enterprise Oil in 1991 and tested gas to surface at 17.6 MMcfd but
was not progressed by Enterprise due to size and gas prices at that
time. IOG's estimate of the recoverable reserves in Elgood is 2.1
MMBoe.
The Hambleton discovery, to the south of the same licence, was
drilled by Century Exploration in 2005 but also was not progressed
to development. IOG estimates that Hambleton has recoverable
resources of 6 BCF (1 MMBoe). IOG believes that the reprocessing of
existing 3D seismic data could increase recoverable resources up to
26 BCF.
There are prospective resources on licence P2260 of 5.3 MMBoe in
the Tetley and Rebellion prospects. Reprocessing and
reinterpretation of existing 3D seismic across 48/22c is ongoing to
determine IOG's estimate of the Elgood reserves. The new seismic
interpretation will also determine the likely size of Hambleton.
IOG is now working on the potential development plans and will
commission a CPR to confirm the resources over this area.
About Skipper:
The Skipper oil discovery is in Block 9/21a in the Northern
North Sea in licence P1609. IOG owns 100% of the Skipper licence
P1609 and is the Operator. In July/August 2016 the Company
successfully drilled its first operated appraisal well and
retrieved oil samples, in order to design the optimum field
development plan. Skipper has independently verified gross 2C
resources of 26.2 MMBbls. Following the results from the appraisal
well, IOG management's estimates of the oil in place in the Skipper
reservoir are minimum/most likely/maximum 119.3/142.6/168.3 MMBbls.
Recovery factor estimates will be revised during the full field
reservoir simulation studies which will now commence.
Competent Person's Statement:
In accordance with the AIM Note for Mining and Oil and Gas
Companies, IOG discloses that Mark Routh, IOG's CEO is the
qualified person that has reviewed the technical information
contained in this announcement. Mark Routh has an MSc in Petroleum
Engineering and has been a member of the Society of Petroleum
Engineers since 1985. He has over 35 years' operating experience in
the upstream oil and gas industry. Mark Routh consents to the
inclusion of the information in the form and context in which it
appears.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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