LONDON (Alliance News) - Independent Oil & Gas PLC on Tuesday said its core development project in the UK southern North Sea has been expanded, upgrading its resource estimate at no extra funding.
Shares in the development and production company were trading up 5.9% at 13.90 pence each on Tuesday.
The company explained that the project will now include 108 billion cubic feet (BCF) of 2C contingent resources, meaning with a medium probability, assigned to the Goddard discovery by ERC Equipoise, and now comprises a total of 410 BCF, of 2P+2C reserves and resources across six discovered gas fields.
Chief Executive Officer Andrew Hockey said: "The integration into our core project of 108 BCF 2C contingent resources at the newly awarded Goddard discovery makes what was already a very strong investment case even more compelling; our fully-owned and operated southern North Sea gas development project now carries a base case internal rate of return of 40% and post-tax net present value of over GBP350 million."
The project is now ready to enter the execution phase as engineering work in a pre-final investment decision phase is complete.
