LONDON – Britain’s government has extended Independent Oil and Gas’ (IOG) Cronx license in the North Sea until end-2015. It has also amended the sale and purchase agreement to allow completion of the acquisition by June 30.
IOG plans to fulfil the license commitments by drilling a well as soon as possible after that date, although this remain subject to securing financing.
Cronx’s base case recovery estimate is 17.2 bcf (490 MMcm) of gas, according to ERC Equipoise’s Competent Person’s Report.
Recently IOG was awarded license P2260, including the Elgood discovery, between the Cronx and Blythe licenses. The company is looking to perform seismic reprocessing work in order to establish whether both Elgood and Cronx could be developed via a single horizontal well.
It also aims to determine whether other discoveries within its southern UK North Sea license area that have been mapped as small could in fact be commercially developed as part of a hub.
Base case recovery estimate for Elgood is 15 bcf (420 MMcm).