(Alliance News) - IOG PLC on Wednesday said it has "significantly" improved its operating performance in the first half of 2023, delivering 93% operating efficiency and a cost reduction programme.
IOG is a UK-focused gas developer and producer. Shares in the firm were down 12% at 3.14 pence on Wednesday morning in London.
Following a successful intervention and production ramp up, IOG said the Blythe H2 gas rate has stabilised at 32 million standard cubic feet per day, within the 30 to 40 mmscf/d pre-well guidance range.
IOG said, as expected, initial production data at H2 indicates better reservoir quality than at Blythe H1 and supports its existing Blythe gas in place and reserves estimates. The company expects second half production to average in the 20 to 30 mmscf/d range.
IOG reported a gross average gas rate of 13.8 million standard cubic feet per day in the half.
Net gas sales totalled 511mmscf at an average realised gas price of 124.0p per therm. Net condensate sales totalled 1,764 metric tonnes at an average price of USD599 per metric tonne.
Revenue before sales and deduction in the half totalled GBP9.5 million. IOG said this was impacted by lower production rates, lower gas prices and higher partner royalty payments.
By Heather Rydings, Alliance News senior economics reporter
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