Independent Oil and Gas plc (IOG) said it saw good synergies from its new gas licences in the UK Southern North Sea (SNS).
LICENCES
During 2020, the production and infrastructure company conducted 3D seismic reprocessing over its UK SNS portfolio covering more than 1,200km².
Areas include P2085 (Harvey) and P2441 (Redwell) licences accepted by the company from the Oil and Gas Authority’s 32nd licensing round.
IOG North Sea Ltd (IOGNSL) has also accepted the OGA’s offer of Licence P2589 – Panther and Grafton discoveries – incorporating Blocks 49/21e and 49/22b.
The company estimates recoverable gas resources of 46 Bcfe and 35 Bcfe respectively.
IOGNSL is a 50-50% operator in partnership with CalEnergy Resources (UK) Ltd (CER).
Panther lies some 5km from the IOG-CER JV’s Elland field and 10km north of its Southwark field, which is part of the Phase 1 development, while Grafton lies 16km northeast of Southwark.
IOGNSL declined the offer of P2587 holding Blocks 48/23d and 48/24c after reprocessed data showed the overburden to be complex.
The company said the move would also help prioritise capital and resource allocation and save money.
HARVEY
IOGNSL said that reinterpretation of P2085 Harvey was challenging but the structure around the 48/23b-2 well (Harvey-2) indicated a management estimated minimum, most likely and maximum recoverable gas resource of 12-21-35 billion cubic feet (Bcfe).
The structure around the 48/23b-6 well location remained a small isolated closure of sub-economic size which IOG has decided to relinquish to cut costs.
IOGNSL also decided to relinquish P2441 Redwell which was estimated to have a most likely recoverable gas resource of 36 Bcfe.
OPPORTUNITIES
“These development opportunities show good synergies with our core portfolio and further technical work will help to assess the full potential of the licence,” said chief executive Andrew Hockey.
“Alongside this we continue to evaluate a Harvey subsea tie-back to Blythe concept, to include in our development opportunities hopper being derived from the 3D seismic reinterpretation programme.
“Our ongoing technical re-evaluation and portfolio ranking work is key to realising our growth ambitions by allocating resources to the best incremental investment opportunities.”