IOG to pursue North Sea Blythe gas hub following buyout

Independent Oil and Gas subsidiary IOG North Sea has agreed to acquire the 50% interest held by Alpha Petroleum Resources in blocks 48/22b and 48/23a in the UK southern North Sea.

Apr 19th, 2016

Offshore staff

LONDONIndependent Oil and Gas subsidiary IOG North Sea has agreed to acquire the 50% interest held by Alpha Petroleum Resources in blocks 48/22b and 48/23a in the UK southern North Sea.

These include theBlythe gas discovery. Assuming approval from Britain’s Oil and Gas Authority (OGA), IOG will become outright owner and operator of the blocks.

Alpha will net an initial consideration of £1.5 million ($2.15 million) with a further $5 million to be paid at first gas.

Mark Routh, CEO of IOG, said: “We can now move ahead to co-develop Blythe with our other assets in surrounding licenses which are 100% owned by IOG in line with our hub strategy.

“Our next task will be to deliver the field development plan for Blythe to the OGA and work on that has already commenced.”

IOG plans to develop Blythe jointly with the nearby Cronx, Elgood, and Harvey gas discoveries. The initial plan, Routh said, is to install a small unmanned platform at Blythe with pre-installed risers to tieback satellites nearby discoveries.

“In addition, [the transaction] allows us to evaluate further the discovered gas in the Carboniferous beneath Blythe and the oil discovery above Blythe in the Zechstein fractured carbonates.”

04/19/2016

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