TIDMIOG
RNS Number : 6855U
Independent Oil & Gas PLC
31 July 2020
31 July 2020
Independent Oil and Gas plc
Operational Update
Independent Oil and Gas plc ("IOG" or "the Company"), (AIM:
IOG.L), the development and production company focused on becoming
a substantial UK gas producer , is pleased to provide an
operational update for July 2020.
Platforms
-- Fabrication of the Phase 1 Southwark and Blythe platforms
continues to progress well, with a two-shift system remaining in
place to manage Covid-19 restrictions
-- Southwark cellar and sub-cellar decks have been fabricated
and painted, with deck stacking expected early next week
-- Southwark mezzanine and weather decks are on target for
timely delivery by the sub-contractor, and jacket fabrication will
also commence shortly
-- Hydrate inhibitor tanks have been delivered and installation has commenced
-- Crane pedestals have been built and delivered, and
fabrication of helidecks and suction piles is also progressing
well
-- Formal platform contract award is expected imminently
SURF
-- Detailed preparations for installation of Phase 1 pipelines
and Elgood umbilical continue with Subsea 7 and supporting
contractors
-- Welding of 12-inch Blythe and 6-inch Elgood reel lay
pipelines is underway at Subsea 7 spool base in Leith ahead of
planned installation later this quarter
-- Seabed survey for pipeline crossings completed in preparation for pipelay campaign
-- 6km 24-inch pipeline extension from the Thames Pipeline to
Southwark is expected to be installed in first half of 2021
-- All associated regulatory consent processes ongoing, with
permits for the 12-inch line being updated to align with latest
crossing design and installation techniques
Drilling
-- Competitive selection process for the jack-up rig for the
five-well Phase 1 drilling programme has advanced to final
post-tender technical and commercial clarifications, assisted by
Petrofac
-- Pre-Drill Data Packages for all wells are complete and detailed well design is progressing
-- Several awards made and orders placed for critical drilling
services and tangibles, and tender processes also underway for
numerous others, including cementing, drilling & measurements,
conductor/riser analysis, surface wellheads & trees and subsea
wellhead tooling
-- Pre-drill rig site survey for Elgood subsea well is underway
and expected to complete this week
Onshore
-- Engineering work and procurement is accelerating for the
refurbishment of the Thames Reception Facilities ("TRF") at Bacton
Gas Terminal ("BGT")
-- Clean-out of the existing TRF slugcatchers is complete, with
less than expected residues encountered, paving the way for full
internal inspection in August
-- Preparations are ongoing for tie-in activities during a
scheduled BGT shutdown later this year
-- Full suite of necessary commercial agreements with BGT
operator Perenco UK Limited continues to be progressed
-- IOG onshore team continues to optimise and adapt planned
activities where necessary to work efficiently around the current
Covid-19 restrictions at Bacton
Subsurface & Licences
-- Seismic reprocessing to further improve subsurface imaging of
the Vulcan Satellites area (Southwark, Nailsworth and Elland
fields) is on track for completion by Q4 2020, in order to optimise
field developments and well designs
-- Harvey and Redwell seismic reprocessing is expected to
provide updated volumetric estimates by Q4 2020, to support plans
for high-return potential incremental developments
-- Equivalent work on Goddard and Abbeydale assets also projected to complete in 1H 2021
-- Final determination of Southwark, Blythe and Elgood fields confirmed by OGA
-- Results of targeted applications for nearby blocks submitted
in the 32(nd) UK Offshore Licence Round awaited from the Oil &
Gas Authority (OGA) in due course
Andrew Hockey, CEO of IOG, commented:
"I am pleased to provide this operational update to keep our
investors informed on Phase 1 progress and wider business
development. Amid the challenges of Covid-19 and the wider
macroeconomic environment, the IOG team and our contractors and
suppliers continue to work hard across the board to safely and
efficiently execute the four key project elements - Platforms,
SURF, Drilling and Onshore - and bring Phase 1 into production in
Q3 2021. This in turn will catalyse our further value creation
strategy, adding on higher-return incremental investments to our
established infrastructure and using cost efficiencies to
strengthen cash flows.
To that end, we are also making good progress with the seismic
reprocessing work to advance our subsurface interpretations of all
pre-development assets in the IOG portfolio, including Harvey,
Redwell, Nailsworth, Elland, Goddard and Abbeydale. If successful,
the additional nearby discovered resources that we have
specifically targeted in our 32(nd) Round applications could also
create further portfolio upside."
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)
Rupert Newall (CFO)
James Chance (Head of Corporate Finance & IR) +44 (0) 20 7036 1400
finnCap Ltd
Christopher Raggett
Simon Hicks +44 (0) 20 7220 0500
Peel Hunt LLP
Richard Crichton
David McKeown +44 (0) 20 7418 8900
Vigo Communications
Patrick d'Ancona
Chris McMahon
Simon Woods +44 (0) 20 7390 0230
About IOG:
IOG owns and operates a 50% stake in substantial low risk, high
value gas reserves in the UK Southern North Sea. The Company's Core
Project targets a gross 2P peak production rate of 140 MMcfe/d (c.
24,000 Boe/d) from gross 2P gas Reserves of 302 Bcfe(1) + 2C gas
Contingent Resources of 108 Bcfe(2), 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 gross unrisked prospective gas resources of 73 Bcfe(2) at
Goddard. Alongside this IOG has management estimated mid-case
recoverable gas volumes of 40 Bcfe and 100 Bcfe at the Harvey and
Redwell licences and continues to pursue value accretive
acquisitions to generate significant shareholder returns.
(1) ERC Equipoise Competent Persons Report: October 2017,
adjusted by Management to account for updated project timing and
compression
(2) ERC Equipoise Competent Persons Report: October 2018
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END
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