Independent Oil & Gas Plc (IOG) has been issued a two-year extension to the initial term for license P2085, that includes Harvey, by the U.K.’s Oil & Gas Authority, the company said on Nov. 29. The license will be extended to December 20, 2019.
IOG has made a commitment to drill a well on the Harvey structure, commencing by September 20, 2019. The rig contract is set to be in place by November 20, 2018.
The unrisked prospective gas resources for the Harvey structure of 114 billion cubic feet (Bcf) makes the license potentially the largest in IOG’s 100%-owned portfolio.
Harvey lies directly between IOG’s Blythe and Vulcan Satellites hubs. Upon successful appraisal, Harvey gas could be exported via the nearby Thames Pipeline, in line with IOG’s hub strategy.
An independent Competent Person’s Report has estimated the low, best and high case unrisked gross prospective gas resources on the Harvey structure to be 45/114/286 Bcf (36/90/226 Bcf on license). The fully risked expected monetary value for the 100%-owned Harvey license is £79 million (US$106 million).
A Harvey development would be likely to have significant economic synergies with IOG’s two nearby gas hubs, IOG said.
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