REG - IOG PLC - Start of Backgassing

IogAnnouncement

04/03/2022 16:00

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RNS Number : 7438D  IOG PLC  04 March 2022

4 March 2022

 

IOG plc

 

Completion of Saturn Banks Reception Facilities (SBRF) and Start of
Backgassing

 

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 provide
a further Phase 1 operational update.

 

Andrew Hockey, CEO of IOG, commented:

 

"I'm very pleased to say that the onshore Saturn Banks Reception Facilities
(SBRF) have now been fully commissioned and pipeline backgassing has started
today. This is the final step to First Gas which we expect in approximately
one week's time. My thanks go to terminal operator Perenco who have worked
very hard to ensure the onshore facilities are safe and ready for IOG's first
production."

 

SBRF and Backgassing

 

All construction, commissioning and function testing activities at the SBRF
have now been completed and fully signed off. The required UK Health and
Safety Executive clarifications referred to previously have been addressed.
The Pre-Start Up Safety Review and operations walkdown have been concluded,
enabling IOG, its pipeline and platform operator ODE Asset Management and
Bacton terminal operator Perenco UK Limited each to be fully satisfied to
commence the backgassing process today.

 

Backgassing involves reverse flow of gas from the terminal to pressurise the
pipeline system up to the safe operating window for start-up, with final
function tests of equipment and safety systems before forward flow can begin.
Subject to weather and logistics, the backgassing and well start-up sequence
is likely to take approximately one week, with first IOG sales gas to be
received onshore rapidly thereafter.

 

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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