IOG Finds More North Sea Gas
London-listed Independent Oil & Gas (IOG) has raised its resource estimates for two gas licences in the south North Sea after collecting and interpreting 1,200 km2 of 3D seismic data, the junior explorer said on March 15.
In light of this data, IOG said it now believed there were sufficient resources for "two new incremental high-return gas hubs." The company has raised its gross 2C estimate for licence P2438 to 132bn ft3 from a 2018 figure of 108bn ft3. The licence contains the Goddard discovery, which will be developed as part of the second phase of IOG's Core project, as well as the Southsea prospect.
The P2442 licence meanwhile has potential for "a valuable multi-field gas hub," IOG said, having identified the Thornbridge and Kelham prospects and upped its resource estimate for the Abbeydale discovery. Abbeydale is now assessed to be 23bn ft3 of gross 2C contingent gas in size, from an earlier estimate of 6bn ft3, while Thornbridge and Kelham have mid-case prospective resources of 66bn ft3 and 31bn ft3 respectively. Several other leads have been identified at the licence, with excellent reservoir quality seen across the area, IOG said.
The licences are 50% held by IOG, serving as operator, and 50% by CalEnergy Resources, which farmed into a group of the company's assets in 2019.
"The new data shows enhanced potential for both licences to host production hubs with step-out exploration and appraisal upside," IOG CEO Andrew Hockey commented. "This fits squarely within our infrastructure-led strategy with our co-owned and operated Thames Pipeline providing direct access to market for all our gas hubs."
IOG aims to launch production from the first phase of the Core project later this year. That phase will develop the Southwark, Blythe and Elgood fields, while the second will target the Goddard, Nailsworth and Elland fields. Together the two phases aim to recover some 410bn ft3 of gas.