Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Independent Oil and Gas targets farm-out as Harvey drilling gets underway

© Maersk DrillingThe Maersk Resilient
The Maersk Resilient

Independent Oil and Gas (IOG) is targeting a major payday as it starts drilling its Harvey prospect in the North Sea.

The appraisal well aims to shore up best estimates that the prospect holds 129 billion cubic feet (BCF) of gas.

If successful, it could see designated partner CalEnergy Resources (CER) farm in 50% to the Southern North Sea prospect.

That would mean CER will pay IOG £20m, along with 95p per million cubic feet of gas, which is the equivalent of £61.3m if Harvey produces the best estimate case of 129 BCF.

It comes after IOG agreed a “landmark” farm-out deal with CER last month for all of its southern sector licences, bar Harvey.

The Maersk Resilient rig arrived at the prospect last night and is expected to take around two months to drill the well if it is successful.

IOG’s chief executive Andrew Hockey said: “Spudding the Harvey appraisal well is an exciting development for IOG and potentially a major catalyst for the business.

“Our objective is to prove up a substantial, high-quality reservoir in the heart of our core asset base which would create significant shareholder value over and above our recently announced farm-out.

“Success at Harvey could trigger a further significant near-term cash payment plus valuable life-of-field royalties should our designated partner exercise its right to farm in.

“We are pleased with our choice of rig and contractors and look forward to drilling the well safely and successfully.”

Recommended for you

More from Energy Voice

Latest Posts