REG - IOG PLC - Blythe H2 well spud

IogAnnouncement

06/03/2023 07:00

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RNS Number : 9251R  IOG PLC  06 March 2023

6 March 2023

 

IOG plc

 

Blythe H2 well spud

 

IOG plc ("IOG", or "the Company"), (AIM: IOG.L) confirms that the Blythe H2
well was spudded at 3.20am on Sunday 5(th) March.

 

The well is being drilled by the Noble Hans Deul jack-up drilling rig (to be
renamed the Shelf Perseverance) under IOG's contract with Shelf Drilling (UK)
Ltd signed in 2020. As with previous IOG development wells, Petrofac is the
designated Well Operator.

 

The H2 well is expected to take approximately three months to drill, complete
and hook-up, subject to the usual offshore operational risks to scheduling.

 

The Company's plans factor in certain H1 production shut-in periods which are
required for full compliance with offshore safety regulations. Under the
Blythe platform Safety Case, on Sunday 26(th) February the H1 well was taken
offline to facilitate safe rig move, interfacing and top hole drilling
operations. An estimated total of 12 days of planned outages in March will
result in lower average production this month. A shorter planned outage will
also be required on completion of the H2 well to enable safe hook-up for
production.

 

Rupert Newall, CEO of IOG, commented:

"The Blythe H2 well has the potential to significantly enhance our current
production levels, reduce water production into the pipeline and minimise
associated opex. It also has fast payback potential and will enable us to
boost cash flow from mid-2023.

I would like to thank our team for their outstanding efforts in accelerating
this well, securing all 36 permits required and getting the rig moved across
to the Blythe platform efficiently and ahead of plan.  This is the first well
that has been designed, engineered and planned by our new IOG team working
with our key contractors Shelf, Petrofac and ODE. We are very focused on
ensuring safe, efficient and successful execution.

In parallel, we are progressing our detailed post-A2 technical evaluation of
Southwark and other key assets in the portfolio in order to optimise our plans
beyond this well."

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the company's obligations under Article 17 of
MAR.

 

Enquiries:

 

 IOG plc                                            +44 (0) 20 7036 1400

 Rupert Newall (CEO)

 Dougie Scott (COO)

 James Chance (Head of Capital Markets & ESG)

 finnCap Ltd                                        +44 (0) 20 7220 0500

 Christopher Raggett / Simon Hicks

 Peel Hunt LLP                                      +44 (0) 20 7418 8900

 Richard Crichton / David McKeown

 Vigo Consulting                                    +44 (0) 20 7390 0230

 Patrick d'Ancona / Finlay Thomson

About IOG:

 

IOG is a UK developer and producer of indigenous offshore gas. The Company
began producing gas in March 2022 via its offshore and onshore Saturn Banks
production infrastructure. In addition to its production assets, IOG operates
several UK Southern North Sea licences containing gas discoveries and
prospects which, subject to future investment decisions, may be commercialised
through the Saturn Banks infrastructure. All its assets are co-owned 50:50
with its joint venture partner CalEnergy Resources (UK) Limited. Further
details of its portfolio can be found at www.iog.co.uk (http://www.iog.co.uk)
.

 

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