(Alliance News) - Independent Oil & Gas PLC on Thursday said it is making gains on phase one of its core project in the North Sea and is on track for first oil in the third quarter of next year.
The development and production company said pretax loss narrow in the six months ended June 30 to GBP3.6 million from GBP4.6 million a year prior. It had no revenue in either period.
Independent Oil & Gas focused on delivering phase one of its core southern North Sea project. Currently the company is on schedule towards its first gas target during the third quarter of 2021.
Independent Oil & Gas took "significant strides" in developing the project. Phase one comprises the development of the Southwark, Blythe and Elgood fields through a total of five wells, and the recommissioning of the Thames pipeline. Importantly, the Phase 1 field development programme was approved by the UK Oil & Gas Authority at the end of April, the company said.
Key contracts were also awarded to industry counterparts for the phase one project's subsea infrastructure, platform fabrication and installation, and well management.
The first of these contract awards was to Subsea 7, the company said, who will handle the project management, engineering, procurement, construction and installation of its subsea, umbilicals, risers and flowlines scope.
Chief Executive Andrew Hockey said: "We are overseeing a rapid transformation in our business with several exciting milestones to come on the path to first gas next year, including the start of development drilling and Southwark and Blythe platform installation.
"Our extensive technical and portfolio development work aimed at incremental opportunities in the wider Thames pipeline catchment area should also start to bear fruit. All told, we are taking great strides towards our goal of becoming a valuable UK gas producer. I look forward to updating the market on further progress."
Independent Oil & Gas shares were down 1.7% at 14.01 pence each on Thursday afternoon.
By Greg Roxburgh; gregroxburgh@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.