(Alliance News) - Independent Oil & Gas PLC on Wednesday said initial results suggest a 49-foot gas column at the Harvey appraisal well in the UK North Sea.
IOG has drilled to 7,537 feet at Harvey, into the Permian Leman sandstone reservoir. Two 90 foot cores were taken, and initial work of wireline data suggests the 49 foot column near the top of the reservoir.
The company will now analyse the other data, with the results then used to assess the future of the well. If IOG can go ahead with a low-cost subsea development, Harvey is close enough to tie-back into the Blythe platform.
Chief Executive Andrew Hockey said: "We have now confirmed a gas discovery at Harvey and are kicking off the analysis required to reach a definitive view on resource range, reservoir quality and deliverability. We will then evaluate Harvey's development potential in the context of our core project, which will be fully-funded at farm-out completion.
"Our gas hub strategy implies a relatively low commerciality threshold for this discovery, which lies in the heart of our core asset base close to the Thames pipeline. We are also pleased to report the drilling rig has seen no health & safety incidents to date."
IOG signed a farm-out in July with CalEnergy Resources Ltd, which can acquire 50% of Harvey within three months of the completion of an appraisal well.
On Monday, IOG announced it had raised EUR100 million in a five-year senior secured bond issue, which was one of the conditions of the farm-out that needed to be completed.
Shares were 4.5% lower on Wednesday shortly after midday at 18.14 pence each.