(Alliance News) - IOG PLC on Wednesday saw shares drop as it continues to struggle with drilling fluid losses, production constraints and shutdowns at several of its projects.
IOG is a London-based, UK-focused net-zero gas and infrastructure operator focused on high return projects. It has an extensive offshore gas portfolio with multiple licences across the Northern Sea, and also owns and operates the Saturn Banks Pipeline alongside CalEnergy Resources Ltd.
The company has re-forecast its production guidance for the second half to between 22 and 28 million standard cubic feet per day from previously between 30 and 50 mmscf/d.
IOG shares plummeted 53% to 8.77 pence each in London on Wednesday afternoon.
At the Southwark drilling project, extensive drilling fluid losses at the A1 well progressed from the Bunter Sandstone formation into the Bunter Shale formation, where further losses occurred.
IOG said it has suspended the A1 well in order to enable hydraulic stimulation and commissioning operations at the A2 well to proceed.
At the Southwark Subsea project, a defective six-inch offshore valve in the Southern Banks pipeline system needs to be depressurised in order to connect the outer section safely to the manifold. Saturn Banks production will therefore be suspended in late October for four weeks, including the November Bacton terminal annual shutdown.
Production at the Blythe field also faced constraints, after data results indicated that the H1 well would ultimately recover 29 billion cubic feet of gas volume, given its limited connectivity to other parts of the field.
Results also showed that the Elgood field is a smaller structure than previously estimated, with projected ultimate recovery of 7.5 billion.
By Holly Beveridge; hollybeveridge@alliancenews.com
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