REG - IOG PLC - Investor Presentation

IogAnnouncement

04/07/2022 07:00

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RNS Number : 1194R  IOG PLC  04 July 2022

4 July 2022

 

IOG plc

 

Investor Presentation

 

IOG plc ("IOG", or "the Company"), (AIM: IOG.L), the Net Zero UK gas and
infrastructure operator focused on high return projects, has released an
updated Investor Presentation incorporating production data up to 30 June
2022. The presentation can be accessed here: https://bit.ly/3NzKiY2
(https://bit.ly/3NzKiY2)

 

Andrew Hockey will present on IOG at the Proactive One2One Investor Forum this
Wednesday 6 July in London. Registration is available here:
www.proactiveinvestors.co.uk/register/event_details/400
(http://www.proactiveinvestors.co.uk/register/event_details/400)

 

Andrew Hockey, CEO of IOG, commented:

 

"We are very pleased to exit the half year with Saturn Banks producing 60
mmscf/d gross, double the level of one month ago and at the top end of our
projected 2H22 range. Our resilience measures on Blythe and Elgood are
starting to bear fruit, with 93% uptime in June. After completing Southwark
East in the coming days, we will resume drilling the Southwark West well, with
both wells targeted for first gas in Q4. This will be followed directly by two
exciting appraisal wells at Goddard and Kelham targeting further growth
opportunities.

 

With average realised gas prices to date of 147p/therm and the forward curve
for this winter currently exceeding 350p/therm (c.$250/boe), our first half
progress sets us up well for a cash generative second half, even as we invest
at Southwark. Our latest corporate presentation provides a detailed update on
all our current portfolio activities."

 

Blythe and Elgood Fields Gas Production

 

Gas production reached 60 mmscf/d gross by the end of 1H22, up from 30 mmscf/d
gross at the start of June. Over the course of June, production averaged 45
mmscf/d gross, with overall uptime of 93% and a volume weighted average
realised price (VWAP) of 130p/therm.

 

From First Gas to the end of the half-year, gross production averaged 34
mmscf/d, with overall uptime of 59% and VWAP of 147p/therm. As previously
stated, based on reservoir analysis to date and factoring in planned and
unplanned downtime, gross average 2H22 Saturn Banks gas production is
projected to be in the 45-60 mmscf/d range, with condensate rates of 250-350
bbl/d.

 

Southwark Field Development

 

The drilling phase of the Southwark East production well is nearly complete
and the Noble Hans Deul rig is expected to resume drilling the Southwark West
production well this week (the top hole section was originally drilled earlier
in the programme). After this, both wells will then be hydraulically
stimulated before being brought onstream. The subsea and hook-up and
commissioning programmes are progressing in parallel, with first gas targeted
in Q4 2022.

 

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

 Andrew Hockey (CEO)

 Rupert Newall (CFO)

 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 / Oliver Clark

About IOG:

 

IOG is a Net Zero UK gas and infrastructure operator focused on high-return
projects. The Company's operations are currently concentrated around its
offshore and onshore Saturn Banks infrastructure in the UK Southern North Sea.
Phase 1 of its Saturn Banks Project, which started production in March 2022,
entails the commercialisation of the Blythe, Elgood and Southwark gas fields
through this infrastructure. Phase 2 of the Saturn Banks Project entails the
Nailsworth, Goddard and Elland gas discoveries, which are subject to future
investment decisions and expected to be commercialised through the same export
infrastructure. The Company also holds further licences with additional
resources including the Abbeydale, Panther and Grafton gas discoveries, the
Kelham North, Kelham Central, Thornbridge and Thornbridge Deep prospects, and
part of the Orrell gas discovery. Currently, all IOG's licences are held 50:50
with its joint venture partner CalEnergy Resources (UK) Limited and operated
by IOG. In addition, the Company continually evaluates further opportunities
for accretive portfolio additions to help generate additional shareholder
returns. Further details are available at www.iog.co.uk (http://www.iog.co.uk)
.

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