Independent Oil and Gas (IOG) has been given more time to commit to an exploration well on its Harvey licence in the Southern North Sea.
If successfully appraised, Harvey has the potential to be the largest gas discovery in the company’s portfolio.
It is 100% owned by IOG and is located in the well understood Leman Sandstone Formation play.
The Oil and Gas Authority has nowconfirmed the continuation of licence P2085, which contains the Harvey discovery, until December 20, 2017.
If an appraisal well is successful, Harvey could be tied back to the same nearby pipeline that the company has signed an Memorandum of Understanding to acquire to evacuate the Blythe and Vulcan Satellite hubs, creating valuable economies of scale.
The technical work prepared and submitted by IOG in relation to its Elgood discovery has also been accepted by the OGA and will be added to the Blythe Field Development Plan (“FDP”) as a satellite development.
Elgood is a relatively small discovery close to Blythe and contains an internally estimated P50 22 BCF of recoverable gas. It is expected to be developed via a single subsea well and tied back to a platform at Blythe. The Field Development Plan is being prepared with submission to the OGA expected in mid-2017. Both Elgood and Blythe are 100% owned and operated by IOG.
Mark Routh, chief executive, said: “We appreciate the continued support of the OGA with regards to our Southern North Sea gas portfolio.
“The excellent technical work completed by our team on Harvey has confirmed an exciting gas discovery adjacent to our Blythe and Vulcans hubs and the work on de-risking Elgood has avoided the need for a further appraisal well before development.
“We are making good progress on moving our Southern North Sea developments forward and related funding and will provide more updates in due course.”