17 Apr 2018
Completion of Thames Pipeline Acquisition and Operational UpdateIndependent Oil and Gas plc ("IOG" or the "Company"), the development and production focused Oil and Gas Company, is pleased to announce that it has now completed the acquisition of the Thames pipeline.
- Pipeline acquired from Perenco UK Limited, Tullow Oil SK Limited and Spirit Energy Resources Limited.
- Recommissioning of the pipeline is an essential part of the development of the Blythe and Vulcan Satellite hubs, allowing gas export to the Bacton Terminal.
- Increasingly important part of Southern North Sea infrastructure, particularly given the closure of other pipeline systems.
- IOG is now the approved operator of the Thames Pipeline which it owns 100%.
- Peak production from the Blythe and Vulcan Satellite hubs is expected to be 180 million cubic feet per day ("MMcfd") and opportunities for additional gas are being considered.
- Ahead of first gas, the Company intends to acquire the onshore reception facilities at the Perenco Bacton terminal. A period of exclusivity has been agreed until the end of September 2018.
- The Intelligent Pigging Programme (“IPP”) is underway with onshore mechanical preparation work at Bacton.
- Offshore Site survey along the Thames Pipeline and survey of all proposed platform locations and intra field connecting pipelines is nearing completion.
- The intention of the IPP is to confirm the feasibility of safe reuse of the pipeline, which is estimated to have initial capacity of 300 MMcfd. Initial results of the IPP expected early May.
- Positive initial site survey results suggest a modified proposed tie in point for the Thames Pipeline which should reduce time and cost both for the pigging operations and subsequent tie back to the planned Southwark platform.
This acquisition is an essential milestone towards Final Investment Decision for our gas hubs. Subject to the Intelligent Pigging Programme results this pipeline should allow for the tariff-free export of our 100% owned gas reserves that were otherwise stranded. Recommissioning of the pipeline may also facilitate the export of new resources that IOG may access and develop in future as well as other gas resources owned by third parties, who would pay a tariff. We are pleased also to be making good operational progress as we head towards Final Investment Decision and look forward to providing further regular updates.
Certain information communicated in this announcement was, prior to its publication, inside information for the purposes of Article 7 of Regulation 596/2014.
Independent Oil and Gas plc: +44 (0) 20 3879 0510
Andrew Hockey (CEO)
James Chance (CFO)
finnCap Ltd: +44 (0) 20 7220 0500
Christopher Raggett / Anthony Adams
Emily Morris / Camille Gochez
Camarco: +44 (0) 20 3757 4980
Georgia Edmonds / Tom Huddart / Monique Perks
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 IOG's licences are owned 100% and operated by IOG.
Further information can be found on www.independentoilandgas.com