REG - IOG PLC - Drilling Update

IogAnnouncement

18/04/2023 07:15

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RNS Number : 5644W  IOG PLC  18 April 2023

18 April 2023

 

IOG plc

 

Drilling update

 

IOG plc ("IOG", or "the Company"), (AIM: IOG.L) provides an update on the
drilling of the Blythe H2 well. Having spudded on 5(th) March, the Company
estimated that the H2 well was expected to take approximately three months to
drill, complete and hook-up, subject to the usual operational risks.

 

The H2 well is being drilled by the Shelf Perseverance jack-up drilling rig
under IOG's contract with Shelf Drilling (UK) Ltd ("Shelf") signed in 2020.
Petrofac is the Well Operator, as with all previous Saturn Banks development
wells.

 

The H2 well was successfully drilled to the Basal Zechstein sequence. However,
while drilling through the Hauptdolomit formation within the Zechstein, an
abnormally pressured gas and oil influx was encountered, with associated
drilling fluid losses. The risk of such a well control challenge was
identified during planning and is being safely managed by Petrofac and Shelf,
in collaboration with the IOG team. However, this now looks likely to impact
the expected well duration, potentially by up to four weeks, while the
associated cost impact will depend largely on the speed of resolution.

 

The influx from the Hauptdolomit has been determined to contain non-commercial
quantities of oil and gas and is not related to the target Rotliegendes gas
reservoir which is over 500 ft deeper and isolated from the Hauptdolomit. The
well has been displaced to a mud weight above the formation pressure.
    Options to progress include isolation of the influx zone with cement
and, if necessary, side tracking of the well.

 

Rupert Newall, CEO of IOG, commented:

"Encountering a gas and oil influx while drilling through the overburden above
the reservoir is a known risk in the Southern North Sea. Associated drilling
fluid losses present an additional challenge, however this is being actively
and safely managed by Petrofac, the Well Operator, and Shelf, the drilling
contractor, working closely with the IOG team, to ensure that drilling ahead
can be safely resumed."

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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