(Alliance News) - IOG PLC on Tuesday said it encountered a well control challenge after drilling at the Blythe H2 well, which could impact the well's expected duration by up to four weeks.
This was after estimating in early March that the Blythe H2 well will take around three months to drill, complete and hook-up, subject to the usual operational risks.
IOG is a UK-focused developer and producer of indigenous offshore gas, with the Blythe H2 well located in the North Sea
It said the H2 well was successfully drilled to the Basal Zechstein sequence, but an "abnormally pressured gas and oil influx was encountered" while drilling through the Hauptdolomit formation with the sequence.
This caused associated drilling fluid losses, it said, but that the risk of this was identified during planning and is being safely managed by Petrofac Ltd and Shelf Drilling (UK) Ltd.
Despite this, IOG said it believes this will now impact the expected well duration by potentially up to four weeks, while the associated cost impact will depend largely on the speed of resolution.
IOG said the H2 well is being drilled being drilled by the Shelf Perseverance jack-up drilling rig under IOG's contract with Shelf signed in 2020.
Petrofac is the well operator, as with all previous Saturn Banks development wells, it added.
"Encountering a gas and oil influx while drilling through the overburden above the reservoir is a known risk in the Southern North Sea," said IOG Chief Executive Officer Rupert Newall.
"Associated drilling fluid losses present an additional challenge, however this is being actively and safely managed by Petrofac...and Shelf...working closely with the IOG team, to ensure that drilling ahead can be safely resumed."
Shares in IOG were down 14% to 5.18 pence each in London on Tuesday morning.
By Greg Rosenvinge, Alliance News reporter
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