Mechanical Completion of Phase 1 Platforms
Independent Oil and Gas plc (IOG, or the Company), (AIM: IOG.L), the UK gas company targeting growth and high returns via an infrastructure-led hub strategy, is pleased to announce that it signed off the Blythe and Southwark platforms as mechanically complete earlier this month. Further to achieving this milestone and the arrival of the Noble Hans Deul rig at Elgood in early April, the Company can also confirm that it has now, as planned, fully drawn its bond escrow account into unrestricted cash.
The two normally unmanned installation (NUI) platforms were constructed by contractor HSM Offshore (HSM) at their yard in Schiedam, Netherlands. In addition to mechanical completion, onshore commissioning and system testing activities are already well underway and expected to be completed in May. The transportation barges are now at the HSM quayside in preparation for load-out. Once yard departure checks are completed, the platforms will be ready for sail-away. Installation of both platforms is scheduled to be completed before the end of Q2, in preparation for first gas in late Q3.
To accompany this update, IOG has today released a Phase 1 platform construction video as part of its 2021 video series. Shot mainly over recent weeks, it provides a brief introduction to the topsides and on-board equipment, and can be viewed here: https://bit.ly/2S5aWBd
Andrew Hockey, CEO of IOG, commented:
“Completing the Blythe and Southwark platforms is another key step forward for IOG in executing Phase 1 and laying the foundations for further growth. HSM have done an excellent job in maintaining the construction schedule despite the pandemic challenges. The focus now turns to completing onshore commissioning work, load-out, transport and installation, all of which fall under the same HSM contract.
As small, remotely operated installations, the Blythe and Southwark platforms will help us to minimise ongoing costs and carbon intensity – key elements of our operating philosophy as we look to scale up an environmentally low-impact UK gas development and production business.
Our latest video provides investors direct insight into both platforms with an on-board view of their key components before they are transported to their field locations later this quarter.”
Jaco Lemmerzaal, Managing Director of HSM, commented:
“Working closely with IOG with a joint focus on efficient delivery, we are very proud of the construction of the Blythe and Southwark platforms being achieved on schedule.
With the onshore phase in the yard nearing completion, our next priority is the safe installation of both platforms offshore. We wish IOG success on achieving first gas later this year.”
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the company’s obligations under Article 17 of MAR.
IOG owns and operates a 50% stake in substantial low risk, high value gas reserves in the UK Southern North Sea. IOG’s 50% Joint Venture partner is CalEnergy Resources (UK) Limited (CER). The Company’s Core Project targets a gross 2P peak production rate of 140 MMcfe/d (c. 24,000 Boe/d) from gross 2P gas reserves of 302 Bcfe¹ and management estimated 2C gas Contingent Resources of 132 Bcfe, via an efficient hub strategy based on co-owned infrastructure. In addition to its 2P reserves at Blythe, Elgood, Southwark, Nailsworth and Elland and 2C contingent resources at Goddard, it has management estimated gross 2C contingent resources of 23 Bcfe at Abbeydale and unrisked mid-case prospective resources of 66 Bcfe at Thornbridge, 31 Bcfe at Southsea, 31 Bcfe at Kelham, 27 Bcfe and 16 Bcfe in the two Goddard flank structures, and 21 Bcfe at Harvey. In December 2020 IOG also accepted a 50% operated stake in Licence P2589, containing the Panther and Grafton gas discoveries with management estimated gross mid-case contingent resources of 46 Bcfe and 35 Bcfe respectively. In addition IOG continues to pursue value accretive acquisitions to help generate significant shareholder returns.
1 ERC Equipoise Competent Persons Report: October 2017, adjusted by Management to account for updated project timing and compression
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