LONDON (Alliance News) - Independent Oil & Gas PLC on Thursday said it has secured a one-year extension to its licence for the Cronx site in the North Sea and has made progress on its other projects in the area.
The company said its Cronx licence now will expire on January 9, 2017, after the extension was approved by the UK Oil & Gas Authority. Independent Oil & Gas also has extended the sale and purchase agreement in place with Swift Exploration to acquire the Cronx licence to September 30.
The Cronx licence has a firm drilling commitment in place, and Independent Oil & Gas said it would take on this obligation at completion of the acquisition of the licence.
Elsewhere, the company said it has extended its licence agreements for the Truman prospect in the North Sea to December 20, 2016. It added the partnership working on the Blythe project is now considering options to improve the economics of the project and is in talks with the Oil & Gas Authority regarding several potential amendments to the development plan for the licence area.
Independent Oil & Gas said it expects to undertake a full 3D seismic reprocessing of the original seismic data for its entire North Sea portfolio during 2016 and added this work programme is fully-funded.
"Our southern North Sea gas portfolio remains a core part of our business on which we believe can make attractive returns despite the current challenging price environment. We are delighted that the OGA has allowed us the appropriate licence extensions to keep the portfolio intact," said Chief Executive Mark Routh.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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