North Sea-focused Independent Oil and Gas (IOG) signed a sale and purchase agreement to acquire the 50% of license P1609 containing the Skipper discovery from Alpha Petroleum Resources (Alpha).
This transaction will result in IOG’s independently verified 2C resources increasing by 13.1 MMbbl. Upon completion of the acquisition, IOG will become operator and will own 100% of the license.
IOG is currently in discussions with the Department of Energy and Climate Change (DECC) and the Oil & Gas Authority (OGA) regarding assuming operatorship of license P1609. Their approval is subject to confirmation of IOG’s technical and environmental competence.
The Skipper oil discovery is in Block 9/21a in the northern North Sea in license P1609. Skipper needs further appraisal by drilling a well to retrieve core and oil samples in order to design the optimum field development plan for the field. IOG can now progress to the appraisal and development stage of this asset. The initial work program to drill the commitment well on the license has been proposed for mid-2016 and is subject to a license extension, which currently expires on 30 September 2015.
IOG is in advanced discussions with a party relating to a rig contract for the initial well and anticipated subsequent development wells on Skipper. 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 may contain oil in place of 46 MMbbl.
IOG continues to make good progress with regard to securing longer term funding to appraise and develop its assets through to production, which would include 100% of Skipper. A letter of intent has been signed with an internationally listed group with a multi-billion dollar market capitalization relating to the funding which is anticipated to complete by mid-August.
After the completion of the Skipper acquisition from Alpha and the previously announced Cronx acquisition, the combined estimate of 2P reserves and 2C resources net to IOG will be 38.6 MMboe.
Image: Map of Skipper discovery/IOG
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