Two Year Drilling Extension at the Harvey Licence

RNS Number : 7778X

Independent Oil & Gas PLC

29 November 2017

 

29 November 2017

Independent Oil and Gas plc

Two Year Drilling Extension at the Harvey Licence

Independent Oil and Gas plc ("IOG" or the "Company"), the development and production focused Oil and Gas Company, is pleased to announce that the Oil & Gas Authority ("OGA") has agreed a two-year extension to the initial term for licence P2085 that includes Harvey.  The licence will be extended to 20 December 2019.

Highlights

·      IOG has made a firm commitment to drill a well on the Harvey structure, commencing by 20 September 2019

·      Rig contract to be in place by 20 November 2018

·      The gross best case unrisked prospective gas resources for the Harvey structure of 114 BCF, makes the licence potentially the largest in IOG's 100% owned portfolio

Mark Routh, CEO and Interim Chairman of IOG commented: -

"We are pleased to have received a 2-year extension to the Harvey licence as it further validates our commitment to drill the well on what has the potential to become our largest gas asset.  We will now progress to finalise our plans to drill the well and look forward to providing details in due course."

Harvey Overview: -

Harvey lies directly between IOG's Blythe and Vulcan Satellites hubs.  Upon successful appraisal, Harvey gas could be exported via the nearby Thames Pipeline, in line with IOG's hub strategy.

An independent Competent Persons Report has estimated the Low/Best/High case unrisked gross prospective gas resources on the Harvey structure to be 45/114/286 BCF (36/90/226 BCF on licence).  The fully risked EMV for the 100%-owned Harvey licence is £79 million.

A Harvey development would be likely to have significant economic synergies with IOG's two nearby gas hubs.

-ENDS-

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

Enquiries:

Independent Oil and Gas plc Mark Routh (CEO) James Chance (CFO)	[phone]
finnCap Ltd Christopher Raggett / Anthony Adams (Corporate Finance)	[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 via an efficient hub strategy.  Alongside this it continues to pursue value accretive acquisitions, to generate significant shareholder returns.  All of IOG's licences are owned 100% and operated by IOG.

Further information can be found on www.independentoilandgas.com

 

END

 

 

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