31 Oct 2017
Vulcan Satellites 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 submitted the Field Development Plan ("FDP") for the Vulcan Satellites hub development to the UK Oil and Gas Authority ("OGA").
- Three-field hub development with first gas targeted by the end of Q2 2019 alongside first gas from IOG's Blythe hub
- 2P reserves of 248 BCF (44 MMBOE) to be developed at the Vulcan Satellites, alongside the Blythe Hub (Blythe and Elgood 2P reserves of 55 BCF), and subject to a successful appraisal well, the Harvey field
- Peak 2P production from the Vulcan Satellites hub targeted in excess of 150 MMcfd from a total of eight development wells
- Life-of-hub gross revenues expected to exceed £1bn based on forward gas prices
- Final Investment Decision targeted at the end of Q1 2018
IOG has so far announced several contractors for the delivery of the Vulcan Satellites FDP, including Schlumberger, Heerema and ODE, subject to contract. The contractor deferral model continues to be employed by IOG to align all parties to the successful development of the project and to reduce upfront funding requirements. Discussions with rig owners, subsea & pipeline contractors and gas off-takers for the Vulcan Satellites are at an advanced stage.
Mark Routh, CEO and Interim Chairman of IOG commented:
"It is one year since we concluded the acquisition of the Vulcan Satellites at a very compelling price. Since then, the IOG team has completed extensive work across the portfolio on the seismic reinterpretation, geophysical modelling, dynamic reservoir modelling, development planning and optimal well design and placement in order to deliver this FDP.
The alignment of contractors to deliver both the Vulcan Satellites and Blythe gas hubs reflects a new spirit of North Sea collaboration and dovetails with the OGA's Maximising Economic Recovery initiative. We look forward to updating all stakeholders on further progress towards project Final Investment Decision early in 2018."
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.
Competent Person's Statement:
In accordance with the AIM Note for Mining and Oil and Gas Companies, IOG discloses that Mark Routh, IOG's CEO is the qualified person that has reviewed the technical information contained in this document. Mark Routh has an MSc in Petroleum Engineering and has been a member of the Society of Petroleum Engineers since 1985. He has over 35 years' operating experience in the upstream oil and gas industry. Mark Routh consents to the inclusion of the information in the form and context in which it appears.