UK’s Oil & Gas Authority (OGA) has awarded a two-year extension to Independent Oil and Gas (IOG) for the initial term on the P2085 license in the UK sector of the North Sea that includes the Harvey discovery.
IOG said on Wednesday that the two-year extension of the license would see it run until December 20, 2019.
The company earlier this month made a firm commitment to the Oil and Gas Authority to drill an appraisal well on Harvey within two years.
In its statement on Wednesday, IOG added it would begin drilling a well on the Harvey structure by September 20, 2019, with a rig contract agreed by November 20, 2018, at the latest.
According to the company, the gross best case unrisked prospective gas resources for the Harvey structure of 114 bcf, makes the license potentially the largest in IOG’s 100% owned portfolio
Mark Routh, CEO and interim chairman of IOG, said: “We are pleased to have received a two-year extension to the Harvey license as it further validates our commitment to drill the well on what has the potential to become our largest gas asset.”
As for Harvey, it lies directly between IOG’s Blythe and Vulcan Satellites hubs. Upon successful appraisal, Harvey gas could be exported via the nearby Thames Pipeline.
An independent competent persons report has estimated the low/best/high case unrisked gross prospective gas resources on the Harvey structure to be 45/114/286 bcf (36/90/226 bcf on the license). The fully risked expected monetary value for the 100%-owned Harvey license is £79 million ($105.9 million).