29th Sep 2014 09:07
LONDON (Alliance News) - Independent Oil & Gas PLC Monday said it has entered a memorandum of understanding with AGR Group ASA for well construction and well project-management services on the company's upcoming drilling plans.
AGR has already started holding talks with several rig owners regarding securing a rig for the drilling by summer 2015, Independent Oil & Gas said.
The plan for the Cronx site in the North Sea is to confirm the crest of the oil reservoir and retrieve core and gas samples. The company said its cost estimate for the well based on current rig rates is GBP6.3 million.
"We are delighted to have signed this MoU, and with AGR's assistance we look forward to operating next year's proposed drilling programme on Cronx, subject to completing the Cronx acquisition. We look forward to progressing these plans and also to working with AGR on other assets," said Independent Oil & Gas Chief Executive Officer Mark Routh.
Shares in Independent Oil & Gas were up 12% to 20.50 pence on Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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