IOG wins one North Sea licence
Independent Oil and Gas (IOG), the North Sea focused oil and gas company, has been awarded the licence between Cronx and Blythe, in the North Sea, containing the Elgood discovery and Tetley and Rebellion prospects.
IOG notes that typically the award of licences in this area are delayed due to environmental considerations, so to be awarded without the expected delay allows the company to immediately consider co-development options with Cronx and Blythe.
The Cronx gas discovery is 14km north-west of the Blythe field in which IOG holds 50%.
The Elgood discovery was drilled by Enterprise Oil in 1990. IOG’s estimate of the recoverable reserves in Elgood is 2.5 million barrels of oil equivalent (“MMBOE”) with additional prospective resources of 5.3 MMBOE in the Tetley and Rebellion prospects. According to the company, reprocessing of existing 3D seismic is required to determine whether Elgood connects to Cronx which would boost recoverable reserves significantly. IOG will now work on the potential development plans and commission a Blythe, Cronx and Elgood CPR to confirm the resources.
Mark Routh, CEO and Interim Executive Chairman of IOG said:
“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. It is a credit to our technical team to have selected these optimal blocks.
“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.”