IOG.L Regulatory News (IOG)

4 April 2022

IOG plc

Operational Update

IOG plc ("IOG", or "the Company"), (AIM: IOG.L), the Net Zero UK gas and infrastructure operator focused on high return projects, provides a further Phase 1 update.

The Company and its offshore Duty Holder ODE Asset Management (ODEAM) have continued to investigate the previously announced chemical injection fault on the Blythe platform which necessitated the Blythe well to be temporarily shut in. On further inspection, additional process and safety studies and procurement of materials are required before implementing the solution. These workstreams are being pursued as rapidly as possible to expedite safe reopening of the Blythe well. The Company will provide further updates as appropriate.

The fault is a mechanical issue on the Blythe topsides and does not relate to the Blythe reservoir. Moreover, it has not impacted the ability to maintain Elgood production which continues in the meantime.

At Southwark, following a successful exercise to remediate the seabed conditions, development drilling remains expected to resume by mid-April as previously stated.

Andrew Hockey, CEO of IOG, commented: 

"We are working urgently to resolve this very frustrating platform mechanical issue which has shut in the Blythe well. Importantly, this is not a reservoir related issue and Elgood production continues in the meantime within a very strong gas market. We will release further updates as we clarify the timing of Blythe resumption."

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.

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About IOG:

IOG is a Net Zero UK gas and infrastructure operator focused on high-return projects. The Company's operations are currently concentrated around its offshore and onshore Saturn Banks infrastructure in the UK Southern North Sea. Phase 1 of its Saturn Banks Project, which started production in March 2022, entails the commercialisation of the Blythe, Elgood and Southwark gas fields through this infrastructure. Phase 2 of the Saturn Banks Project entails the Nailsworth, Goddard and Elland gas discoveries, which are subject to future investment decisions and expected to be commercialised through the same export infrastructure. The Company also holds further licences with additional assets including the Abbeydale, Panther and Grafton gas discoveries, the Kelham North, Kelham Central, Thornbridge and Thornbridge Deep prospects, and part of the Orrell gas discovery. Currently, all IOG's licences are held 50:50 with its joint venture partner CalEnergy Resources (UK) Limited and operated by IOG. In addition, the Company continually evaluates further opportunities for accretive portfolio additions to help generate additional shareholder returns. Further details are available at www.iog.co.uk.