15 Oct 2018
Significant Contingent and Prospective Resources Confirmed at GoddardIndependent Oil and Gas plc ("IOG" or the "Company"), the development and production focused oil and gas Company, is pleased to announce the results of a Competent Person’s Report (“CPR”) on the Goddard licence by ERC Equipoise Limited ("ERCE").
Gross mid-case contingent (2C) gas resources of 108 BCF for the main Goddard structure, plus gross mid-case unrisked prospective gas resources in two adjacent structures directly to the east of the Goddard discovery of 73 BCF, which are both in line with management estimates
Subject to appraisal, a success case scenario and development, these resources could convert to 181 BCF in the mid-case
Gross unrisked 1C/2C/3C Contingent Gas Resources are 54.3/107.8/202.8 BCF
In addition, the Low/Best/High gross unrisked prospective gas resources are 41.8/73.0/121.4 BCF. CPR assesses geological chance of success of the prospective gas resources at 48%
The chance of development is estimated as being 75%
Under the licence, which officially commenced on 1 October 2018, a firm commitment was made to the Oil and Gas Authority (“OGA”) to drill an appraisal well on Goddard within three years
Goddard CPR and an updated corporate presentation on IOG website
Andrew Hockey, CEO of IOG commented:
“It is very encouraging that the mid-case contingent resources and the prospective resources in the Goddard structure have been independently confirmed to be in line with management estimates. This again corroborates the high quality of the work undertaken by IOG’s technical team and we are very excited to commit to the appraisal well. Once drilled, the Company would move forward to field development planning as fast as possible. Even the 2C resources case of 108 BCF would be economic to develop, but it is important to delineate the full size of this discovery with the appraisal well so that the development plan can be optimised. We look forward to providing details on the well plans in due course.”
Goddard, previously known as Glein, lies in blocks 48/11c and 48/12b, (IOG 100%) licence P2438 which was awarded to the Company in the 30th Licensing Round. Upon successful appraisal, Goddard gas could be exported via the recently recommissioned Thames Pipeline, in line with IOG’s hub strategy.
The CPR states that the Goddard discovery has one tested fault block in which lie the contingent resources and two adjacent prospective fault blocks, one of which was penetrated by a well but was not tested. These two so-called ‘pop-up’ structures are therefore allocated as prospective gas resources under the SPE PRMS guidelines and have been allocated a 48% geological chance of success.
An appraisal well is planned to test the south-eastern extent of the Goddard discovery and to test the adjoining ‘pop-up’ structures which lie immediately to the east and adjacent to the Goddard discovery.
The commitment on licence P2348 is to reprocess 175 sq. kms of 3D seismic data to PreSDM and to drill an appraisal well within three years of licence award, which is by 1 October 2021.
A copy of the CPR and an updated corporate presentation are available on the IOG website at: - http://www.independentoilandgas.com/
Certain information communicated in this announcement was, prior to its publication, inside information for the purposes of Article 7 of Regulation 596/2014.
|Independent Oil and Gas plc
Andrew Hockey (CEO)
James Chance (CFO)
Mark Hughes (COO)
|+44 (0) 20 3879 0510|
|+44 (0) 20 7220 0500|
|Peel Hunt LLP
|+44 (0) 20 7418 8900|
|+44 (0) 20 3757 4980|
IOG owns substantial low risk, high value gas Reserves in the UK Southern North Sea. The Company is targeting a 2P peak production rate in excess of 200 MMcfd (c. 35,000 Boe/d) from its substantial current portfolio (2P gas Reserves of 303 BCF) via an efficient hub strategy. In addition to the independently verified proven reserves, IOG now has independently verified 2C contingent gas resources of 108 BCF in Goddard and best estimate unrisked prospective gas resources of 187 BCF (73 BCF in Goddard and 114 BCF in Harvey.) If the contingent and prospective resources are converted into proven reserves from the upcoming appraisal wells and development planning activity the 2P proven reserve gas portfolio would amount to 598 BCF. Alongside this IOG continues to pursue value accretive acquisitions, to generate significant shareholder returns. All IOG's licences are owned 100% and operated by IOG.
About ERC Equipoise Limited:
ERCE is an independent consultancy specialising in geoscience evaluation and engineering and economics assessment. Except for the provision of professional services on a time-based fee basis, ERCE has no commercial arrangement with any other person or company involved in the interests which are the subject of this report.
ERCE has the relevant and appropriate qualifications, experience and technical knowledge to appraise the assets professionally and independently. ERCE considers that the scope of the CPR is appropriate and includes and discloses all information required to be included therein and was prepared to a standard expected in accordance with the AIM Rules.
Competent Person’s Statement
In accordance with the AIM Note for Mining and Oil and Gas Companies, IOG discloses that Mark Routh, IOG’s Chairman, is the qualified person that has reviewed the technical information contained in this document. Mark Routh has an MSc in Petroleum Engineering and has been a member of the Society of Petroleum Engineers since 1985. He has over 35 years’ operating experience in the upstream oil and gas industry. Mark Routh consents to the inclusion of the information in the form and context in which it appears.
Further information can be found on www.independentoilandgas.com