RE: Harvey Gas Dicovery !!11 Sep 2019 09:06
FinnCap not adding much:
Appraisal well encounters 49 ft gas column.
IOG’s Harvey appraisal well in the UK Southern North Sea has reached TD and initial wireline log analysis points to a 49ft gas column at the top of the Permian Leman Sandstone reservoir. A comprehensive data set was taken from the well, alongside two 90ft cores, which will be analysed and management resource estimates updated. Pre-drill, Harvey had estimated Low/Best/High case prospective resources of 85/129/199 bcf. We value Harvey’s Best case prospective resources at 8p within our 60p/sh risked-NAV.
?Low-cost tie-back candidate to Core Project infrastructure.
Harvey is located close to IOG’s Core Project infrastructure and is seen as a low-cost subsea tie-back candidate to the Blythe platform with a low commerciality threshold. As part of the recent farm-out agreement, CalEnergy Resources (CER) has the option to acquire 50% of Harvey within three months. If exercised, CER will pay an additional £20m to IOG and a £0.95/mcf royalty on its share of Harvey production.