IOG.L Share News (IOG)

(Sharecast News) - UK gas and infrastructure operator IOG updated the market on Southwark drilling operations on Wednesday, having expected the first Southwark development well to spud by the weekend of 19 December, following the repair of the Noble Hans Deul rig.
The AIM-traded firm said that, having initially expected a minor delay due to repeated technical issues with the underwater remotely-operated vehicle, it had not yet been possible to safely spud the well.

A fully functioning vehicle was required for surveying the rig's spud cans and ensuring the rig was correctly aligned, as an "essential prerequisite" for drilling to proceed.

It said a second, higher specification remotely-operated vehicle, together with spares and additional personnel, had been mobilised to the rig but was still unable to complete the necessary surveys owing to further technical issues.

Repair operations were underway to rectify both units, and an alternative vessel-based solution was being put in place should it be required.

The company said it currently expected the well to be spudded "in the coming days", reiterating its guidance for Southwark first gas in mid-2022.

"After the extensive efforts to get the rig successfully repaired and remobilised to Southwark, it is very frustrating to have not yet spudded the first Southwark development well," said chief executive officer Andrew Hockey.

"However, as always, safety is paramount and we are actively pursuing alternative solutions with the relevant contractors.

"With spud now expected in the coming days, Southwark first gas remains planned for mid-2022."

At 1128 GMT, shares in IOG were down 2.52% at 35.58p.