North Sea-focused Independent Oil and Gas (IOG) is aiming to drill an appraisal well on the Skipper discovery later this year with contractor led funding.
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Image from IOG. |
The Skipper oil discovery is in Block 9/21a in the northern North Sea in license P1609.
With the appraisal well, IOG hopes to retrieve core and oil samples in order to design the optimum field development plan. Skipper has independently verified gross 2C resources of 26.2 MMbbl. The appraisal well will also target two exploration prospects directly beneath the Skipper oil discovery which is estimated to contain an additional oil in place of 46 MMbbl.
IOG has received a rig proposal that includes a partial deferment of the costs and could allow the well to be drilled later this year, subject to full funding of the rig contract and the well permitting process. IOG continues to explore alternative funding arrangements and is in discussions with several contractors regarding the provision of well services and equipment on a full cost deferral basis and also with several parties regarding potential loan finance to bridge any funding gap relating to the Skipper commitment well.
IOG has presented the rig proposal and the progress with certain contractor discussions to the Oil and Gas Authority (OGA) and it has agreed to extend the license by three months to 31 December 2015. IOG aims to drill the Skipper well as 100% owner, which requires completion of the sale and purchase agreement to acquire 50% of the license from Alpha Petroleum Ltd. Alpha has agreed to extend the deadline for completion of the acquisition by one month to 7 October 2015.
Alpha and IOG also recently presented an update on the Blythe development plans to the OGA and a 15-month license extension to 31 December 2016 has now been agreed. Alpha and IOG have agreed with the OGA that a draft field development plan will be submitted by 31 December 2015.
Darwin Strategic has agreed to defer the repayment of its loan to IOG by one month to 4 October 2015 when £358,000 will be payable. No additional fees or interest have been charged. If the loan is not repaid by this date Darwin will have the right to convert any outstanding balance into equity at 85% of the three lowest average daily prices in the preceding 10 days. IOG is now funded until early October 2015.
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