REG - IOG PLC - Southwark drilling update

IogAnnouncement

29/12/2021 07:00

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RNS Number : 8622W  IOG PLC  29 December 2021

29 December 2021

 

IOG plc

 

Southwark drilling update

 

IOG plc ("IOG", or "the Company"), (AIM: IOG.L), the Net Zero UK gas and
infrastructure operator focused on high return projects, provides an update on
Southwark drilling operations.

 

The first Southwark development well was expected to spud by the weekend of
18-19 December, following the repair of the Noble Hans Deul rig. Having
initially anticipated a minor delay, owing to repeated technical issues with
the underwater Remotely Operated Vehicle (ROV), it has not yet been possible
to safely spud the well. A fully functioning ROV is required for surveying the
rig's spud cans (leg footings) and ensuring the rig is correctly aligned, as
an essential prerequisite for drilling to proceed. A second, higher
specification ROV, together with spares and additional personnel, has been
mobilised to the rig but has as yet been unable to complete the necessary
surveys owing to further technical issues. Repair operations are underway to
rectify both units and an alternative vessel-based solution is being put in
place should it be required. It is currently expected that the well will be
spudded in the coming days and the Company reiterates its guidance for
Southwark first gas in mid-2022.

 

Andrew Hockey, CEO of IOG, commented:

 

"After the extensive efforts to get the rig successfully repaired and
remobilised to Southwark, it is very frustrating to have not yet spudded the
first Southwark development well. However, as always, safety is paramount and
we are actively pursuing alternative solutions with the relevant contractors.
With spud now expected in the coming days, Southwark first gas remains planned
for mid-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 / 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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