19 Jul 2017
Blythe and Elgood FDP SubmissionIndependent Oil and Gas plc ("IOG" or the "Company"), the development and production focused Oil and Gas Company, is pleased to announce that it has today submitted the Field Development Plan ("FDP") to the UK Oil and Gas Authority ("OGA") for the Blythe Hub, which comprises the Blythe and Elgood fields. This follows on from IOG's submission of a draft FDP for only the Blythe field in December 2016.
The Blythe and Elgood gas fields are 100% owned and operated by IOG and located in the UK Southern North Sea close to existing infrastructure and other IOG-owned licences. Blythe contains independently verified 2P reserves of 34.3 billion cubic feet ("BCF") (6.1 million barrels of oil equivalent, ("MMBoe") and Elgood 22 BCF of 2C resources (4.3 MMBoe). A new Competent Persons Report ("CPR") currently being completed for the Blythe Hub will soon provide up-to-date independently verified estimates of the reserves and resources. Neither Blythe nor Elgood requires further appraisal and on FDP approval the Elgood resources would be upgraded to 2P.
The Blythe Hub is expected to provide the first gas for IOG via the recommissioned Thames Pipeline and therefore the first revenues to the Company from its current portfolio of assets. IOG is in the process of completing the 100% acquisition of the pipeline which is intended to be tested and recommissioned. There are significant synergies with the 100%-owned Vulcan Satellites Hub, containing independently verified 2C resources of 321 BCF (55.45 MMBoe), which is also intended to be exported via the Thames Pipeline. IOG is also 100% owner of the Harvey discovery, which lies between the Blythe and Vulcan Satellites Hubs. Harvey needs further appraisal and is currently estimated to have P50 recoverable resources of 113 BCF (19.5 MMBoe).
Mark Routh, CEO and Interim Chairman of IOG commented:
We are very pleased to have delivered the Blythe Hub FDP for approval to the OGA, thanks to the team's extensive development work. This is a major step forward from the single-field draft submission in December 2016. The Blythe Hub is of great strategic value to IOG alongside the larger Vulcan Satellites Hub. Commercial negotiations continue to be progressed upon the basis of deferrals of a substantial proportion of contractor costs as well as prepayments from potential gas offtakers to help meet the funding requirements. This aligns all our partners to ensure an efficient project and help create value for all stakeholders. We look forward to providing further updates in due course.
About Independent Oil and Gas:
IOG owns substantial low risk, high value gas resources in the UK Southern North Sea. The Company is targeting 170 MMcfd gas production from its current portfolio of 500 BCF (88 MMBoe) via an efficient gas 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.