5th Jun 2014 09:40
LONDON (Alliance News) - Independent Oil and Gas PLC Thursday said it is seeing delays to its field development plan at the Blythe Field and the appraisal well for its Skipper discovery, as it struggles to obtain suitable vessels for the process.
The North Sea-focused oil and gas firm said that the operator of the Blythe Field, Alpha Petroleum Resources Ltd, has received tenders for the pipeline route and site survey for its planned field development but that due to restricted availability of suitable vessels, the results from the survey are not expected until the third quarter.
As such, submission of its field development plan for Blythe to the Department of Energy & Climate Change is now expected to occur in the fourth quarter. It added that the field development plan is a key milestone towards achieving first gas production from the site, which is now targeted in mid-2016.
Under an agreement signed with BP Gas Marketing Ltd, a subsidiary of BP PLC, during February, IOG will sell its 50% share of the gas produced from the Blythe gas field to BP.
The company also announced delays to its Skipper appraisal well, which plans to appraise the Skipper discovery and other prospects, due to the time required to prepare for the appraisal well and secure a suitable drilling rig. It said the well is now scheduled to take place in the second or third quarter 2015.
The current net 2C resource in Skipper allocated to IOG is 13.1 million barrels with a net present value of GBP137 million, with the potential for 46 million barrels of oil in place in two further prospects.
IOG added that it is continuing to look at opportunities to acquire producing assets to support its growth strategy and made applications for three licences during the recent 28th Seaward Licensing Round.
In order to fund the acquisition plans, the company said it would utilise its senior loan facility and it has agreed new funding arrangements with Darwin Strategic Ltd, which has subscribed for 5.6 million shares at a price of 32 pence each, providing the company with GBP1.8 million.
IOG shares were down 13% to 25.01 pence, putting it in the top ten AIM ALL-Share fallers Thursday morning.
By Tom McIvor; [email protected]; @TomMcIvor1
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