IOG.L Regulatory News (IOG)

3 November 2020

Independent Oil and Gas plc

Award of Phase 1 Rig Contract to Noble Corporation

Independent Oil and Gas plc ("IOG" or "the Company"), (AIM: IOG.L), the UK gas company targeting high returns via an infrastructure-led hub strategy, as operator of its joint venture with CalEnergy Resources (UK) Ltd, is pleased to announce that it has awarded the rig contract for its Core Project Phase 1 to a subsidiary of Noble Corporation ("Noble"). This follows a competitive selection process by IOG's drilling and contracting teams, assisted by well management contractor Petrofac, involving extensive technical and commercial evaluation across several drilling contractors.

Noble's Hans Deul jack-up rig has been selected to drill the five Phase 1 production wells, one each of which are planned at the Blythe and Elgood fields and three at the Southwark field. The fields all lie in 20-30 metre water depth in the UK Southern North Sea ("SNS"). The Hans Deul has a track record of successfully and safely executing wells in the SNS.

The Phase 1 drilling campaign is scheduled to commence in Q1 2021 and, subject to actual well durations over the five wells, is expected to last into Q2 2022, with First Gas scheduled for Q3 2021.

The contract also includes extension options to drill up to two further wells on favourable terms, at IOG's election.

Alongside this, detailed well design is progressing, on track to be completed in early 2021 ahead of the first well being spudded. The Company has also contracted most of the key services, tangibles and logistics for the Phase 1 drilling campaign and is tendering and negotiating multiple associated contracts.

Andrew Hockey, CEO of IOG, commented: 

"We are very pleased to have contracted the Noble Hans Deul rig for our Phase 1 drilling campaign. Noble is a highly experienced drilling contractor and the Noble Hans Deul is both technically and commercially a strong choice, with a safe and successful track record of delivering similar wells.

This rig contract is another key step in ensuring efficient execution of Phase 1 of our SNS Core Project, with optionality for further drilling activity on favourable terms. It also reflects good ongoing collaboration between our drilling and contracting teams and Petrofac, who are the approved Well Operator. We look forward to spudding the first well in Q1 2021.

Robert Eifler, CEO of Noble Corporation, said:

"We are proud to support IOG and their partners on the Core Project Phase 1 drilling campaign. The Noble Hans Duel has a proven history of successful operations in the North Sea and we look forward to delivering safe and efficient operations for IOG on this important project."

Certain information communicated in this announcement was, prior to its publication, inside information for the purposes of Article 7 of Regulation 596/2014.

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About IOG:

IOG owns and operates a 50% stake in substantial low risk, high value gas reserves in the UK Southern North Sea. The Company's Core Project targets a gross 2P peak production rate of 140 MMcfe/d (c. 24,000 Boe/d) from gross 2P gas Reserves of 302 Bcfe¹ + 2C gas Contingent Resources of 108 Bcfe², via an efficient hub strategy. In addition to the independently verified 2P reserves at Blythe, Elgood, Southwark, Nailsworth and Elland and 2C Contingent Resources at Goddard, IOG also has independently verified best estimate gross unrisked prospective gas resources of 73 Bcfe² at Goddard. Alongside this IOG has management estimated mid-case recoverable gas volumes of 40 Bcfe and 100 Bcfe at the Harvey and Redwell licences and continues to pursue value accretive acquisitions to generate significant shareholder returns. In September 2020 IOG was also offered four further Southern North Sea blocks adjacent to its existing portfolio which it had applied for in the 32nd Offshore Licensing Round.

1ERC Equipoise Competent Persons Report: October 2017, adjusted by Management to account for updated project timing and compression

2ERC Equipoise Competent Persons Report: October 2018