REG - IOG PLC - Southwark Development Well Spud

IogAnnouncement

31/12/2021 07:00

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RNS Number : 1160X  IOG PLC  31 December 2021

31 December 2021

 

IOG plc

 

Phase 1 Drilling Campaign: Southwark Development Well Spud

 

IOG plc (IOG, or the Company), (AIM: IOG.L), the Net Zero UK gas and
infrastructure operator focused on high return projects, is pleased to
announce the spudding of the first Southwark development well.

 

The Noble Hans Deul jack-up rig mobilised from repairs in Dundee on 3 Dec 2021
and initially jacked up at the Southwark Platform on 9 Dec. After preparations
for drilling, the first Southwark well spudded at 2100hrs on 30 December.

 

First Gas is expected at Southwark in mid-2022 after the planned installation
in Q1 2022 of the 6km Saturn Banks pipeline extension to the Southwark
platform. The rig is then scheduled to move on to drill the Goddard and Kelham
North/Central appraisal wells while analysis of reservoir and production data
from Southwark development wells 1 and 2 will inform an optimal Southwark 3
well plan.

 

 

Andrew Hockey, CEO of IOG, commented:

 

"We are pleased to have overcome the technical issues with ROV equipment and
to have completed the spud can surveys needed to allow us to spud the first
development well at Southwark, another important step for IOG in delivering
our Phase 1 project. The Southwark wells have been meticulously planned by the
IOG drilling, subsurface, subsea and HSE teams in collaboration with our main
drilling contractors Noble Corporation, Petrofac and Schlumberger, our
Platform Duty Holder ODE Asset Management and our partner CalEnergy Resources
(UK) Limited and fully integrate the learnings from the Elgood and Blythe
wells. We have a very clear collective focus on ensuring safe and efficient
performance leading successfully to First Gas in mid-2022 from the Southwark
Field."

 

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 / Chris McMahon / Oliver Clark

About IOG:

 

IOG's Saturn Banks Project targets a gross peak production rate of 140 mmscf/d
(c. 24,000 Boe/d) from gross 2P gas reserves of 302 Bcfe¹ and management
estimated 2C gas Contingent Resources of 132 Bcfe, via an efficient hub
strategy based on co-owned infrastructure. In addition to its 2P reserves at
Blythe, Elgood, Southwark, Nailsworth and Elland and 2C contingent resources
at Goddard, it has management estimated gross 2C contingent resources of 23
Bcfe at Abbeydale and gross unrisked mid-case prospective resources of 36 Bcfe
at Kelham North, 42 Bcfe at Kelham Central, 58 Bcfe at Thornbridge, 31 Bcfe at
Southsea, 28 Bcfe and 19 Bcfe in the two Goddard flank structures. The Orrell
discovery, with management estimated gross 2C contingent resources of 42 Bcfe,
also lies approximately 50% on the P2442 licence held 50% by IOG. IOG also
holds a 50% operated stake in Licence P2589, containing the Panther and
Grafton gas discoveries with management estimated gross mid-case contingent
resources of 46 Bcfe and 35 Bcfe respectively. In addition, IOG continues to
pursue value accretive acquisitions to help generate further significant
shareholder returns.

¹ERC Equipoise Competent Persons Report: October 2017, adjusted by Management
to account for updated project timing and compression

 

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