REG - IOG PLC - Update on Southwark drilling operations

IogAnnouncement

10/01/2022 07:05

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RNS Number : 8851X  IOG PLC  10 January 2022

10 January 2022

 

IOG plc

 

Update on Southwark drilling operations

 

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

 

Drilling operations have continued at Southwark since the first development
well was spudded on 30 December 2021. However, the Noble Hans Deul rig has
experienced an increasing challenge with seabed conditions that, if not
remediated, would compromise rig stability.

 

Technical personnel have explored potential options to manage these
challenges. However, on Friday 7 January, the rig owner concluded that, as a
prudent precautionary measure, temporary re-location of the rig will be
required to facilitate seabed remediation and enable safe continuation of
Southwark drilling operations. This course of action is now in motion.

 

As ever, the top priority of IOG and its drilling contractors remains the
safety of all personnel, whilst ensuring the safe and timely continuation of
the Southwark drilling campaign. Temporary relocation of the rig minimises the
safety and integrity risks to personnel and assets. The rig is expected to
remain offshore with non-essential crew and equipment demobilised while the
issue is rectified. Further updates will be provided once there is more
certainty on the length of remediation work."

 

Andrew Hockey, CEO of IOG, commented:

 

"This is a frustrating but absolutely necessary step to ensure we can drill
and complete the Southwark production wells in a fully safe manner, which is
always our foremost priority. Our team is working around the clock with our
drilling contractors Noble Corporation and Petrofac to minimise the
interruption and resume the Southwark drilling programme at the earliest
opportunity."

 

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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