Independent Oil and Gas to Operate Two New Blocks in UK North Sea

Independent Oil and Gas Ltd (“IOG”), the North Sea focused Oil and Gas Company, has announced that in the UK 27th Licensing Round it has been offered a licence for blocks 8/20 and 8/25.

These blocks will be 100% owned and operated by IOG and could be tied back to a future development of the Skipper Field in block 9/21a, of which IOG owns 50%.

The Skipper development is subject to a successful appraisal well, scheduled to be drilled in the summer of 2013. On blocks 8/20 & 8/25, IOG has committed to acquire and reprocess 300 sq kms of 3D seismic. IOG’s current view of the unrisked recoverable resources is 28 MMBbls. IOG expects any future developments to be tax efficient, with each field likely to benefit from the Ł800m heavy oil field allowance.

Other licences for which IOG applied have been delayed due to environmental considerations and so further awards are possible in due course.

Commenting, Mark Routh, CEO of IOG, said: “We are delighted to be offered our first blocks as an Operator and importantly this award offer is in line with our stated hub development strategy. The successful application is a testament to the competence of IOG’s technical team.”

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Press Release, October 30, 2012