18th Dec 2019 15:57
(Alliance News) - Independent Oil & Gas PLC said Wednesday it suffered a "technical issue" when inputting the analysis from its drilling at the Harvey appraisal well in the UK North Sea, which delayed the initial analysis.
The company said this has now been fixed, and the data showed "mixed" results.
Shares in IOG were down 9.3% in London on Wednesday at 14.85 pence each.
IOG has drilled to 7,537 feet at Harvey, into the Permian Leman sandstone reservoir. Two 90 foot cores were taken, and initial work of wireline data suggests the 49 foot column near the top of the reservoir.
"The results of the 48/24b-6 well are mixed. The 49 foot gas column encountered at the well location appears to be a small independent pocket of gas of limited areal extent, resulting in what the company believes to be sub-commercial volumes," IOG said.
The updated mapping, however, indicates the presence of a larger structure at Harvey, north east of the 48/23-2 well, IOG said.
The company added: "The size of this structure implies mid-case recoverable volumes of approximately 40 Bcfe, analogous to Blythe. Additional short-term technical work can provide further definition on the updated mapping and the Company will proceed with this as the next step."
Chief Executive Andrew Hockey said "The Harvey well has provided us with an invaluable data set and enhanced geological knowledge of the area which may unlock a new development opportunity for IOG, and has reinforced the benefit of a highly focused regional presence. To achieve a robust initial interpretation of the Harvey well results, it was critical to ensure the integrity of the well data analysis and we have now done that. This gives us an updated subsurface view which can be further clarified by additional technical work.
"Although the gas accumulation at the 48/24b-6 well location is sub-commercial, our updated post-well mapping indicates that the northern section of the pre-well Harvey structure is likely to contain commercial volumes of gas and that Redwell has fairly substantial gas in place. We now intend to undertake the further modelling necessary to evaluate the potential for a commercial development in these licences which would leverage their proximity to our fully-funded core project infrastructure. Meanwhile, progress on development of core project phase 1 continues on track following final invest decision in late October."
By Paul McGowan; [email protected]
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