6th Nov 2014 12:37
LONDON (Alliance News) - Independent Oil and Gas PLC Thursday said it was only awarded one of three licenses it bid for in the UK's 28th offshore licensing round after being outbid, and it stressed that tax cuts and clarity are needed for the North Sea to continue to develop.
Independent was awarded one license between its existing Cronx and Blythe licenses, allowing the company to co-develop all three of its licenses at once.
"Typically the award of licences in this area are delayed due to environmental considerations, so to be awarded without the expected delay allows us to immediately consider co development options with Cronx and Blythe," it said in a statement.
The new license contains the former Elgood discovery which was drilled by Enterprise Oil in 1990, alongside the Tetley and Rebellion prospects. The estimated recoverable reserves in the Elgood discovery is 2.5 million barrels of oil equivalent with additional prospective reserves of 5.3 million barrels of oil equivalent in the two prospects.
Independent is reprocessing its existing 3D seismic to determine if the Elgood discovery connects to the Cronx license as it would significantly boost recoverable reserves, it said in a statement.
"Whilst very pleased with the award, we are also disappointed to have been outbid by two major oil companies on our other applications who also bid firm wells," said Chief Executive and interim Chairman Mark Routh.
"The 28th round has been a success and the outcome is good news for UK PLC, UK oil jobs and eventually oil related tax revenues. In order to derive those benefits the industry needs tax cuts and most importantly tax clarity in the short term. With the North Sea, there is life in the old dog yet," added Routh.
Independent shares were down 0.7% to 10.55 pence per share Thursday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
IOG.L