UK Minnow Books Rig for Harvey Well
UK Independent Oil & Gas has signed a letter of intent with Maersk Drilling for a jack-up rig to drill the Harvey appraisal well in the southern gas basin, it said May 7. Built in 2008, the Maersk Resilient is a high-spec rig with a strong operating history.
The well is planned to follow on directly from the rig's current campaign, with the spud date at Harvey expected to be in July. In the success case, with full coring and testing, the well would be expected to take about two months.
IOG is also close to finalising a contract with Halliburton to provide offshore drilling services on the Harvey well. As previously announced, Fraser Well Management has been appointed operator for the well.
Following the company's successful equity fundraise in April 2019, required long-lead items have been ordered and the relevant regulatory approvals and permits are being submitted to the upstream regulator, Oil & Gas Authority, for final approvals.
The Harvey appraisal well is to confirm gas resource volumes which management estimate at 85bn ft³-199bn ft³ prospective resources in the low/high case, with a 63% geological chance of success. The Harvey East licence also contains the Redwell discovery on which further technical work is ongoing to establish commerciality.
Harvey is central in IOG's asset portfolio, close to the fully-owned and proven 550mn ft³/day capacity Thames Pipeline. If successfully appraised, the additional scale and synergies of a Harvey development could substantially enhance the portfolio's overall value and returns, it said.
IOG plans to take final investment decision (FID) at the earliest feasible time on its core project, which comprises 410bn ft³ of 2P+2C reserves and resources across six discovered Southern North Sea gas fields. A number of well-funded potential partners are progressing their work as part of the previously announced farm-out process. On success, this process could provide valuable funding optionality via a development carry which would significantly reduce the new capital required. First gas is planned to be delivered within 20 months of FID.
CEO Andrew Hockey said the "exciting, high-impact Harvey appraisal well" has the potential to significantly enhance its gas project.
"In parallel, we remain resolutely focussed on progressing the core project, and in particular pushing ahead with the farm-out process. We continue to be encouraged by the progress made with potential farm-in partners and are focused on delivering an attractive transaction that allows us to progress to FID this summer."