IOG Doubles North Sea Reserves

Published at 08:39AM - 21/06/16

Independent Oil and Gas (IOG) acquired the remaining 50% in the Southern North Sea licence that contains the Blythe gas discovery.

According to the North Sea firm, this covers blocks 48/22b and 48/23a and will turn IOG into a licence operator with full ownership.

“We are delighted to have completed the acquisition of the Blythe gas discovery, which immediately doubles our independently verified 2P reserves and gives the company 100% ownership and control of the Blythe hub assets in addition to the recently announced pending acquisition of the nearby Vulcan satellites hub,” IOG CEO Mark Routh, said.

IOG Doubles North Sea Reserves

Blythe requires no further appraisal and this transaction adds a further 17.2 billion cubic feet, or 3 million barrels of oil equivalent to IOG’s independently verified 2P reserves, the company informed.

An initial consideration of £1.5 million was payable at completion with deferred consideration of a further US$5 million (£3.4 million) to be paid at first gas.

“We are making good progress with the Field Development Plan for Blythe and an update will be made in due course,” Routh added.

In separate, the company has agreed to issue 181,818 new ordinary shares in the capital of IOG and applied to the London Stock Exchange for the effect.

IOG Expands North Sea Resources

Following this acquisition, IOG estimated its 2P reserves in Blythe and 2C resources in Skipper to be at 40.2 million barrels of oil equivalent.

As well as this, the Blythe and Cronx acquisitions will mean IOG will own five licences in the North Sea, all of which will now be owned 100% by the company.

IOG also holds a 100% working interest in two other licences: one contains the Truman prospect and Harvey discovery and is located east of Blythe and the other contains the Elgood and Hambleton discoveries and the Tetley and Rebellion prospects and is located between the Blythe and Cronx licences.