IOG secures funds for further North Sea drilling

Sept. 23, 2021
IOG has raised £8.5 million ($11.65 million) in funds through a new share placement.

Offshore staff

LONDONIOG plc has raised £8.5 million ($11.65 million) in funds through a new share placement. The company plans to use the proceeds for a drilling campaign in the UK southern North Sea.

CEO Andrew Hockey said: “As we approach first gas in Q4 2021 [from the Saturn Banks hub project], we are already looking to drive accretive new growth beyond.

“This fund raise enables us to exercise an attractive extension option for the Noble Hans Deul rig for a dual-lateral well in 2022 to appraise both the Kelham North and Kelham Central prospects on the 30th Round License P2442 (block 53/1b) and prove up a high-return incremental Southern Hub to be tied back directly into our Saturn Banks infrastructure.

“Our seismic reprocessing has demonstrated potential for up to six assets in this hub, which lies in a historically prolific producing area of the southern North Sea.”

Current plans are for the Kelham North and Kelham Central well to follow an appraisal well on the Goddard prospect in P2438 (blocks 48/11c and 12b), to be financed from existing resources and drilled directly after the first two Southwark production wells.

The Goddard well will assess upside potential to the southeast of the structure.

Some of the funds will also go toward seismic reprocessing on P2589 (blocks 49/21e and 22b, Panther and Grafton) where the company sees possibilities for a similar uplift in commercial potential to P2442.