Independent Oil and Gas plc Goddard and Abbeydale Area Technical Update
Tuesday 16 March 2021
Independent Oil and Gas plc ("IOG" or "the Company"), (AIM: IOG.L), the UK gas company targeting high returns via an infrastructure-led hub strategy, is pleased to provide a technical update on its P2438 (Goddard) and P2442 (Abbeydale Area) licences in the UK Southern North Sea (SNS), both of which are jointly held by IOG (50%, operator) and CalEnergy Resources (UK) Limited (CER) (50%).
Highlights
· Interpretation and mapping of 1,200km² of 3D seismic data newly reprocessed to Pre-Stack Depth Migration (PSDM) level has significantly improved subsurface understanding of these licences, enabling management resource estimates to be updated
· This enhances the potential to create two new incremental high-return gas hubs, a northern hub in P2438 and a southern hub in P2442, in line with Company strategy
o Both hubs would be within scope of the Thames Pipeline export route
· P2438 licence potential enhanced by higher resources at Goddard discovery and identification of nearby Southsea prospect
o Goddard gross 2C contingent resources increased from 108 billion cubic feet (BCF) in the 2018 Competent Persons Report (CPR) to new management estimate of 132 BCF
o The two Goddard flanks gross mid-case prospective resources revised to 27 BCF and 16 BCF, with geological chance of success (GCOS) up to 71% from 48% (CPR)
o Southsea has gross mid-case prospective resources of 31 BCF and 48% GCOS
· P2442 licence also shows potential for a valuable multi-field gas hub, given identification of Thornbridge and Kelham prospects and higher Abbeydale resources
o Abbeydale discovery gross 2C contingent resource estimates increased from 6 BCF to 23 BCF, significantly increasing its commercial potential
o Thornbridge has gross mid-case prospective resources of 66 BCF with 32% GCOS
o Kelham has gross mid-case prospective resources of 31 BCF with 80% GCOS
o Several further leads identified; excellent reservoir quality across the licence
· Further detailed mapping, amplitude analysis and static and dynamic reservoir modelling is being progressed across these assets to advance them towards development decisions
Andrew Hockey, CEO of IOG, commented:
"It is very pleasing that our extensive seismic reprocessing work over the past year has identified additional resources and opportunities on both P2438 (Goddard and Southsea) and P2442 (Thornbridge, Kelham and Abbeydale). The new data shows enhanced potential for both licences to host production hubs with step-out exploration and appraisal upside. 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.
At IOG we always seek to plan our developments based on the best subsurface understanding of our assets. Applying this technical rigour to our portfolio helps us to allocate capital appropriately, select the right development concepts, optimise drilling designs, and ultimately to generate best shareholder value. I look forward to providing further technical updates on the rest of the portfolio while we continue on the path to Phase 1 first gas in Q3."