(Alliance News) - IOG PLC on Monday said it successfully spudded it Blythe H2 well on Sunday, adding it expects to take around three months to drill, complete and hook-up the well.
The North Sea-focused gas and infrastructure operator said this timetable was subject to "the usual offshore operational risks" to scheduling.
The Blythe H2 well is being drilled by the Noble Hans Deul jack-up drilling rig, which is to be renamed the Shelf Perseverance, under IOG's contract with Shelf Drilling (UK) Ltd.
This deal was signed in 2020, IOG said. Petrofac Ltd is the designated well operator, as with previous IOG development wells.
IOG said its plans have considered certain H1 well production shut-in periods, which are required for full compliance with offshore safety regulations. On February 26, the H1 well was taken offline to facilitate safe rig move, interfacing and top hole drilling operations.
It said a total of 12 days of planned outages in March will result in lower average production this month, while a shorter planned outage will also be required on completion of the H2 well to enable safe hook-up for production.
"The Blythe H2 well has the potential to significantly enhance our current production levels, reduce water production into the pipeline and minimise associated operating expenses. It also has fast payback potential and will enable us to boost cash flow from mid-2023," said Chief Executive Officer Rupert Newall.
"I would like to thank our team for their outstanding efforts in accelerating this well, securing all 36 permits required and getting the rig moved across to the Blythe platform efficiently and ahead of plan.
"In parallel, we are progressing our detailed post-A2 technical evaluation of Southwark and other key assets in the portfolio in order to optimise our plans beyond this well."
Shares in IOG were down 3.0% to 4.85 pence each in London on Monday morning.
By Greg Rosenvinge, Alliance News reporter
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