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Independent Oil and Gas secures drilling extension at Harvey licence

Independent Oil and Gas (IOG) has been granted a two-year extension from the Oil & Gas Authority (OGA) to the initial term for licence P2085 in the North Sea that includes Harvey.

The licence will be extended to 20 December 2019.

Highlights

– IOG has made a firm commitment to drill a well on the Harvey structure, commencing by 20 September 2019

– Rig contract to be in place by 20 November 2018

– The gross best case unrisked prospective gas resources for the Harvey structure of 114 BCF, makes the licence potentially the largest in IOG's 100% owned portfolio

Mark Routh, CEO and Interim Chairman of IOG commented: –

"We are pleased to have received a 2-year extension to the Harvey licence as it further validates our commitment to drill the well on what has the potential to become our largest gas asset.  We will now progress to finalise our plans to drill the well and look forward to providing details in due course."

Harvey Overview: –

Harvey lies directly between IOG's Blythe and Vulcan Satellites hubs. Upon successful appraisal, Harvey gas could be exported via the nearby Thames Pipeline, in line with IOG's hub strategy.

An independent Competent Persons Report has estimated the Low/Best/High case unrisked gross prospective gas resources on the Harvey structure to be 45/114/286 BCF (36/90/226 BCF on licence). The fully risked EMV for the 100%-owned Harvey licence is £79 million.

A Harvey development would be likely to have significant economic synergies with IOG's two nearby gas hubs.