LONDON – Independent Oil and Gas (AIM:IOG.L) has agreed to acquire 100% of the southern UK North Sea license block 48/22a from Swift Exploration.
The concession contains a gas discovery that IOG intends to rename Cronx. The transaction remains subject to approval from the UK’s Department of Energy and Climate Change (DECC). The license is due to expire at the end of April, but IOG is seeking an 18-month extension as the new operator.
Perenco UK discovered Cronx in 2007 with well 48/22b-6, 14 km (8.7 mi) northwest of the Blythe field in which IOG has a 50% stake. An independent report into Cronx suggests 17.6 bcf (498 MMcm) could be recovered.
IOG plans to drill a pilot well this November, subject to rig availability, permits, and funding, to confirm or prove more gas. The well – the company’s first as operator – would be reused and extended into a producer for the field development.