Operational Update

RNS Number : 6675M

Independent Oil & Gas PLC

01 May 2018

 

1 May 2018

Independent Oil and Gas plc

Operational Update

Independent Oil and Gas plc ("IOG" or the "Company"), the development and production focused Oil and Gas Company, is pleased to provide an operational update on its Southern North Sea dual hub development project, the Thames Pipeline Intelligent Pigging Programme ("IPP"), and Harvey.

Highlights

·    Contract with Subsea7 signed to provide a Diving Support Vessel ("DSV") to execute the offshore scope of work for the IPP.

·      3D seismic reprocessing to Pre-Stack Depth Migration underway over the Harvey structure to optimise the appraisal well location.

·     New Drilling Manager appointed, Gordon McCaig, who will become IOG's Well Integrity Authority for the Harvey well and the ten development wells that IOG will drill on the Blythe Hub and Vulcan Satellites Hub.

·   Environmental Impact Assessment for the Vulcan Satellites Hub was submitted to the Department of Energy and Industrial Strategy ("BEIS") on 24 April 2018.

Ahead of the IPP commencing, the DSV mobilised to location on 26 April 2018 and has commenced work. The IPP will include pressure tests of the Thames Pipeline before and after pigging operations. The Initial IPP and pressure test results are expected by early June 2018.

In addition to the IPP, the Front End Engineering and Design ("FEED") contract has been awarded to Wood, a reputable international engineering house, for the subsea and pipelines scope of work on the dual hub development. Platform fabrication FEED was completed by Heerema Fabrication Group on 30 April 2018 and design notification will be submitted to the UK Health and Safety Executive ("HSE") shortly.

The Company remains on schedule for Field Development Plan ("FDP") approvals for the Blythe and Vulcan Satellites Hubs by the end of August 2018, with first gas planned in Q4 2019.

Andrew Hockey, CEO of IOG commented:

"We are pleased to have progressed from the onshore mechanical preparation stage of the Thames Pipeline Intelligent Pigging Programme, which commenced in February, to the crucial offshore stage of operations. This pigging is an essential step in confirming to all stakeholders that our proven and fully-licensed 2P reserves of over 300 BCF can be produced safely and efficiently via the recommissioned Thames Pipeline. Owning high-capacity export infrastructure is a major strategic advantage in further developing our UK Southern North Sea portfolio.

In parallel with the Intelligent Pigging Programme we continue to make good progress toward completing the necessary engineering and technical studies and submissions to the regulatory bodies to support our Final Investment Decision ("FID") for which we remain on track by the end of August. We look forward to providing further updates on the pigging programme, progress toward final investment decision and the appraisal well at Harvey at the earliest opportunity.

In addition to unlocking the value from our development and appraisal assets, the Company continues to seek opportunities for further portfolio expansion through selective asset acquisitions and licensing rounds."

-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)	[phone]
finnCap Ltd Christopher Raggett / Anthony Adams (Corporate Finance) Emily Morris / Camille Gochez (Corporate Broking)	[phone]
Camarco Georgia Edmonds / Tom Huddart / Monique Perks	[phone]

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 Reserves of 303 bcf) via an efficient hub strategy.  Alongside this it continues to pursue value accretive acquisitions, to generate significant shareholder returns.  All IOG's licences are owned 100% and operated by IOG.

Further information can be found on www.independentoilandgas.com

 

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