IOG eyes FPSO for Skipper field development. Cronx, Elgood reserves could double

Independent Oil and Gas plc (IOG), the North Sea focused oil and gas company, has informed that discussions with certain FPSO providers are ongoing for the Skipper field development located in licence P1609 in the UK North Sea. 

The licence was awarded in 2009 and currently Alpha Petroleum Resources Ltd is operator with 50% stake while IOG has other 50% stake in the licence.

However, IOG and Alpha signed a Sale and Purchase Agreement (SPA) in June 2015 whereby IOG will acquire the 50% of licence P1609 from Alpha and therefore own 100% interest. The acquisition is subject to confirmation of funding and regulatory approvals.

IOG also said discussions regarding a rig contract for Skipper are ongoing between the company and a third party, targeting a commitment well in mid-2016.

In addition, the company has signed a Memorandum of Understanding (MOU) with Baker Hughes for the provision of oilfield services on the Skipper development and IOG’s other projects.

The additional Baker Hughes work to evaluate the prospectivity beneath the Skipper discovery and also to evaluate other Southern North Sea (SNS) prospects and discoveries including Truman, Harvey, Hambleton, Tetley & Rebellion is expected to start once the final report is completed and subject to IOG’s funding.

Cronx & Elgood and Blythe

IOG also informed that remapping work over the core SNS gas portfolio with Baker Hughes RDS has helped remove uncertainties relating to commercial volumes in both Cronx and Elgood discoveries. This work will be further enhanced with new data purchased by IOG and the work scope has accordingly been extended, the company explained in the press release.

According to the company, the initial results suggest that Cronx and Elgood are not linked, but nonetheless the Directors anticipate that the final report will support the Directors’ expectations that following the completion of a new Competent Person’s Report (CPR), IOG’s proven reserves which are currently 3.0 MMBOE could more than double.

The Cronx SPA has been extended to December 2015 and is expected to complete shortly after IOG’s long term funding is secured. To remind, IOG has 50% stake in Cronx licence

IOG added that the Carboniferous resource play beneath Blythe is encouraging and appears to be a larger structure than first anticipated, with further analysis to be undertaken ahead of the final report from Baker Hughes RDS expected in July 2015.

Mark Routh, CEO of IOG commented:

“We are pleased to strengthen our relationship with Baker Hughes as the initial results from the seismic remapping work are positive. We expect that the resource plays beneath the Blythe and Cronx/Elgood fields are larger than first anticipated, and with additional reservoir understanding we can more than double our proven reserves.”

Scott Reeves, President of Baker Hughes RDS commented:

“We believe that the added field remapping will help to better predict resource potential and accessibility. By understanding the critical reservoir properties we’ll be able to recommend and engineer a development plan to help maximize profitable recovery.”

Offshore Energy Today Staff

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