North Sea Drilling Starts At Skipper Well

Published at 09:50AM - 14/07/16

UK North Sea-focused Independent Oil and Gas (IOG) announced today it expects to start drilling the Skipper appraisal well on July 22, located in the UK North Sea.

The well will be drilled using Transocean’s Sedco 704 semi-submersible rig, which is expected to come on contract on or around July 20.

“We believe this well is transformational for the company and look forward to its imminent spudding,” IOG CEO Mark Routh, said.

North Sea Drilling Starts At Skipper Well

The Skipper appraisal well is fully owned by IOG and is located in block 9/21a in production licence P1609 in the Northern North Sea.

It is expected that it will take approximately 22 days to drill the well to 5,600 feet.

The primary objective will be to retrieve good quality reservoir condition oil samples to optimise the Skipper field development plan.

Transocean Offshore Drill Crew Working The Drill Floor

As well as this, the well will drill two mapped reservoir structures beneath the oil field in the Lower Dornoch and Maureen formations.

“We continue to make good progress towards the drilling of the Skipper appraisal well, which has received tremendous support from the North Sea community,” Routh added.

IOG Issues Shares to Pay Rig Owner

According to IOG, an approved field development plan on Skipper would convert the board’s estimated 34.1 million barrels of contingent resources into 2P reserves, based on a 25% recovery factor.

IOG added that initial results from the well are expected to be disclosed in mid-August.

The company explained that the advance payment due to Transocean and the expected non-deferred contribution to the demobilisation of the rig, has been settled through the issuance of 6,350,000 ordinary shares.

Overall, IOG owns a combined 40.2 million barrels of oil equivalent in the UK North Sea.

After the completion of its Blythe and Cronx acquisitions, IOG will hold a total of five licences in the region.