IOG plc has identified undeveloped additional conventional gas resources and several new prospects around the Saturn Banks project in the southern North Sea (SNS).
CENTRAL CLUSTER
The company, which holds cash of £31.9 million with £6.8m restricted, outlined potential development of at least five contiguous licences in the broader Vulcan and Jupiter areas.
This includes the Southwark, Nailsworth, Elland and Grafton fields and “several clearly identified potential additions containing both conventional and tight gas resources”.
IOG’s interpretation of 3D seismic data on the P2589 Grafton licence identified “two structures containing undeveloped conventional gas within the Europa field”, now renamed as Kinnegar.
Kinnegar, formerly a ConocoPhillips field, lies 13km northeast of Southwark and directly south of Grafton.
The company also identified “several further exploration targets” between Southwark and Kinnegar.
Investigations continue on the potential of the Southwark A1 and A2 wells, as well as the future Nailsworth and Elland wells.
SOUTHERN CLUSTER (P2442)
IOG continues work on its other licences, with plans “well advanced” for drilling the Kelham North/Central appraisal well subject to final JV approval.
The well aims to prove up a “high-return, fast-payback” southern cluster, potentially including Kelham North, Kelham Central, Abbeydale, Orrell (which lies partly on block), Thornbridge and Thornbridge Deep.
The gross success case appraisal well cost is estimated at £14-18m (£7-9m net to IOG).
NORTHERN CLUSTER (P2438)
IOG and joint venture partner CalEnergy Resources (UK) Ltd (CER) have started a farm-out process for an additional partner for, in total, up to 50% working interest in P2438 (up to 25% each).
The company said that Goddard was one of the largest undeveloped SNS gas discoveries, with gross 2C: 115bcf, and several potential export routes including the Saturn Banks infrastructure.
Advanced planning is underway to drill the Goddard appraisal well in continuation from Kelham North/Central, with an estimated gross cost of £14-18m.
IOG intends Goddard to be the core field in a northern cluster, potentially including two adjacent Goddard flank structures and the Southsea prospect.
The current licence terms for the southern and northern clusters expire on 31 March 2024, following a six-month extension.
33RD LICENSING ROUND
The value of all the clusters would increase if the company’s nine applications are successful in the 33rd licencing round.
Interviews with the North Sea Transition Authority are due later this month.