48/22a (P1737) (Map: Wood Mackenzie PathFinder/IOG)

The Cronx licence to the west of Blythe has been acquired by IOG at 100% Working Interest (subject to completion and DECC approval).

CPR Gas in Place estimates are:

GIIP (Bcf) P90 P50 P10
Cronx Discovery 10.9 24.9 56.3

(Source: ERC Equipoise CPR – July 2012)

CPR economically recoverable resources are estimated at:

Resources (Bcf) 1 C 2C 3C
Cronx Discovery 7.7 17.6 40.4

(Source: ERC Equipoise CPR – July 2012)

In addition to the gas reserves there is an estimated condensate yield of approximately 24.5 Bbls/MMcf in the Cronx gas.

The Cronx gas discovery is 14km north-west of the Blythe field in which IOG holds 50%.  Cronx was discovered in 2007 by well 48/22b-6 drilled by Perenco UK Ltd. Subject to agreement with the co-owner of the Blythe field, Alpha Petroleum Resources Ltd and the successful development of Blythe, the gas export of Cronx would be via the Blythe hub which will be 50% owned by IOG.

IOG anticipates drilling a pilot well into Cronx in 2015, subject to rig availability, the necessary permits and funding, which IOG currently estimates to be £6.1m. IOG expects the well to confirm the recoverable resources, which IOG believes has the potential to be larger than the 17.6 BCF base case in the CPR. The well would be reused and extended into a producing well as part of the field development.