LONDON – Independent Oil and Gas (IOG) has issued an update on its various programs in the southern UK gas basin.
The company claims its recent deal to acquire the offshoreThames pipeline at a nominal cost from Perenco, will cut capital costs for its development projects in the area by up to £100 million ($134 million).
The sale and purchase agreement for Thames should allow the company to export gas from its entire portfolio of fields to Bacton Gas Terminal in Norfolk on the English east coast.
It also involves the transfer of the PL370 license and IOG becoming the pipeline operator. Once the regulatory process has been fulfilled, IOG intends to conduct intelligent pigging to assess the state of the line and identify any remedial work required prior to de-watering.
This year the company also performed seismic interpretation and mapping on the Vulcan South, Vulcan North West and Vulcan East fields, with Fenix Delft conducting hydraulic stimulation studies for the Vulcan Satellites, and ERC Equipoise reservoir modeling.
This has led IOG’s management to revise its estimates of gas volumes.
Preliminary well design work was also completed for the Vulcan Satellites and the cost model further refined. Work is under way on a field development plan which will be submitted later this year to the UK authorities.
Currently IOG anticipates first gas in 2Q 2019 from Vulcan South via an unmanned wellhead platform exporting to Bacton through the re-commissioned Thames pipeline.
Engineering work continues with selection of platform facilities and interfield lines.
In the same area, IOG has a 100% interest in license P2085 east of the company’sBlythe field (blocks 48/23c and 48/24b). Beagle Geoscience’s 3D seismic reprocessing and mapping has improved understanding of the complex faulting in the overlying strata.
Based on this work, the company has altered its in-place estimates for the Harvey prospect to 77/176/403 bcf.
The studies on Harvey suggest a potentially substantial gas discovery between the company’s two southern North Sea gas hubs in the well understood Leman sandstone formation play.
If appraisal drilling delivers, Harvey could emerge as the largest gas discovery in IOG’s portfolio.
The UK’s Oil & Gas Authority has granted an extension for P2085 until Dec. 20, with a commitment to an appraisal well required to extend the term further.