UK small cap player Independent Oil and Gas (IOG) has signed a Letter of Intent to use Maersk Drilling's Maersk Resilient jack-up rig to drill the Harvey appraisal well in the southern sector of the UK North Sea.
The well is expected to be started in July, with drilling due to take about two months. Harvey was discovered by well 48/23-2, which was drilled by Arco in 1984. The Harvey licence, P2085, was awarded to IOG at 100% working interest in December 2013 in the 27th Licensing Round.
The primary objective of the Harvey appraisal well is to confirm gas resource volumes which management estimate at 85-199 Bcf prospective resources, with a 63% geological chance of success. IOG also says it's close to finalising a contract with Halliburton Manufacturing and Services to provide offshore drilling services on the well. Fraser Well Management has already been appointed as well operator for the well .
Further prospects in the Harvey and Harvey East licences could also be matured into step-out exploration opportunities drillable from a future Harvey platform, says IOG. The Harvey East licence also contains the Redwell discovery on which further technical work is ongoing to establish commerciality. Harvey is also close to IOG's fully-owned Thames Pipeline gas export infrastructure.
Alongside preparations for Harvey, IOG is focusing on reaching final investment decision (FID) on its core project, which comprises 410 Bcf of 2P+2C reserves and resources across six discovered southern North Sea (SNS) gas fields. IOG is working on a farm-out process which would bring it partners and funding for the project. IOG says it expects to select a preferred partner in 1H 2019. First Gas is planned to be delivered within 20 months of FID.
Andrew Hockey, CEO of IOG said: "We are very pleased to be working with Maersk Drilling, Halliburton and Fraser Well Management on the exciting high-impact Harvey appraisal well, which has the potential to significantly enhance our SNS gas project. The Maersk Resilient is an excellent rig which we have secured with a summer slot which, with typically more benign weather, should also help to minimise operational risks.
"In parallel, we remain resolutely focussed on progressing the Core Project, and in particular pushing ahead with the farm-out process. We continue to be encouraged by the progress made with potential farm-in partners and are focused on delivering an attractive transaction that allows us to progress to FID this summer."