TIDMIOG
RNS Number : 0117E
Independent Oil & Gas PLC
15 October 2018
15 October 2018
Independent Oil and Gas plc
Significant Contingent and Prospective Resources Confirmed at
Goddard
Independent Oil and Gas plc ("IOG" or the "Company"), the
development and production focused oil and gas Company, is pleased
to announce the results of a Competent Person's Report ("CPR") on
the Goddard licence by ERC Equipoise Limited ("ERCE").
Highlights:
-- Gross mid-case contingent (2C) gas resources of 108 BCF for
the main Goddard structure, plus gross mid-case unrisked
prospective gas resources in two adjacent structures directly to
the east of the Goddard discovery of 73 BCF, which are both in line
with management estimates
-- Subject to appraisal, a success case scenario and
development, these resources could convert to 181 BCF in the
mid-case
-- Gross unrisked 1C/2C/3C Contingent Gas Resources are 54.3/107.8/202.8 BCF
-- In addition, the Low/Best/High gross unrisked prospective gas
resources are 41.8/73.0/121.4 BCF. CPR assesses geological chance
of success of the prospective gas resources at 48%
-- The chance of development is estimated as being 75%
-- Under the licence, which officially commenced on 1 October
2018, a firm commitment was made to the Oil and Gas Authority
("OGA") to drill an appraisal well on Goddard within three
years
-- Goddard CPR and an updated corporate presentation on IOG website
Andrew Hockey, CEO of IOG commented:
"It is very encouraging that the mid-case contingent resources
and the prospective resources in the Goddard structure have been
independently confirmed to be in line with management estimates.
This again corroborates the high quality of the work undertaken by
IOG's technical team and we are very excited to commit to the
appraisal well. Once drilled, the Company would move forward to
field development planning as fast as possible. Even the 2C
resources case of 108 BCF would be economic to develop, but it is
important to delineate the full size of this discovery with the
appraisal well so that the development plan can be optimised. We
look forward to providing details on the well plans in due
course."
Goddard Overview:
Goddard, previously known as Glein, lies in blocks 48/11c and
48/12b, (IOG 100%) licence P2438 which was awarded to the Company
in the 30(th) Licensing Round. Upon successful appraisal, Goddard
gas could be exported via the recently recommissioned Thames
Pipeline, in line with IOG's hub strategy.
The CPR states that the Goddard discovery has one tested fault
block in which lie the contingent resources and two adjacent
prospective fault blocks, one of which was penetrated by a well but
was not tested. These two so-called 'pop-up' structures are
therefore allocated as prospective gas resources under the SPE PRMS
guidelines and have been allocated a 48% geological chance of
success.
An appraisal well is planned to test the south-eastern extent of
the Goddard discovery and to test the adjoining 'pop-up' structures
which lie immediately to the east and adjacent to the Goddard
discovery.
The commitment on licence P2348 is to reprocess 175 sq. kms of
3D seismic data to PreSDM and to drill an appraisal well within
three years of licence award, which is by 1 October 2021.
A copy of the CPR and an updated corporate presentation are
available on the IOG website at: -
http://www.independentoilandgas.com/
-ENDS-
Certain information communicated in this announcement was, prior
to its publication, inside information for the purposes of Article
7 of Regulation 596/2014.
Enquiries:
Independent Oil and Gas plc
Andrew Hockey (CEO)
James Chance (CFO)
Mark Hughes (COO) +44 (0) 20 3879 0510
finnCap Ltd
Christopher Raggett
Anthony Adams
(Corporate Finance)
Camille Gochez
(Corporate Broking) +44 (0) 20 7220 0500
Peel Hunt LLP
Richard Crichton
David McKeown +44 (0) 20 7418 8900
Camarco
Georgia Edmonds
Tom Huddart
Monique Perks +44 (0) 20 3757 4980
Notes
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 in excess of 200 MMcfd (c. 35,000 Boe/d) from its substantial
current portfolio (2P gas Reserves of 303 BCF) via an efficient hub
strategy. In addition to the independently verified proven
reserves, IOG now has independently verified 2C contingent gas
resources of 108 BCF in Goddard and best estimate unrisked
prospective gas resources of 187 BCF (73 BCF in Goddard and 114 BCF
in Harvey.) If the contingent and prospective resources are
converted into proven reserves from the upcoming appraisal wells
and development planning activity the 2P proven reserve gas
portfolio would amount to 598 BCF. Alongside this IOG continues to
pursue value accretive acquisitions, to generate significant
shareholder returns. All IOG's licences are owned 100% and operated
by IOG.
About ERC Equipoise Limited:
ERCE is an independent consultancy specialising in geoscience
evaluation and engineering and economics assessment. Except for the
provision of professional services on a time-based fee basis, ERCE
has no commercial arrangement with any other person or company
involved in the interests which are the subject of this report.
ERCE has the relevant and appropriate qualifications, experience
and technical knowledge to appraise the assets professionally and
independently. ERCE considers that the scope of the CPR is
appropriate and includes and discloses all information required to
be included therein and was prepared to a standard expected in
accordance with the AIM Rules.
Competent Person's Statement
In accordance with the AIM Note for Mining and Oil and Gas
Companies, IOG discloses that Mark Routh, IOG's Chairman, is the
qualified person that has reviewed the technical information
contained in this document. 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.
Further information can be found on
www.independentoilandgas.com
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END
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