Corporate and Operational Update
Highlights
- Specialist in-house discipline heads all now in place; new COO selection process progressing
- Phase 1 remains on schedule for
- Blythe and Elgood offshore pipelay campaign executed in Q4 2020
- Detailed well design to complete in Q1 and first development well expected to spud by early Q2
- Platform fabrication also expected to complete in Q1, before installation in Q2
- Onshore tie-ins to LAPS facilities successfully completed during Q4 2020 Bacton terminal regular maintenance shutdown
- Gas sales tender process being prepared, with ECC appointed as advisor
- Portfolio technical re-evaluation continues - further update expected later in Q1
- New Climate Change and Sustainability Policy and Social Policy adopted in 2020
"This is set to be another breakthrough year for IOG, when we deliver our first production and revenue, paving the way for sustained value generation for shareholders. Having made real progress in 2020 in difficult conditions, we expect to complete fabrication of our Phase 1 platforms this quarter and start development drilling by early Q2. We recently completed important steps towards achieving
We now have our full development team in place, led by in-house specialist senior managers across all disciplines. This is important both for Phase 1 execution and to maximise wider portfolio value. We also expect to confirm the selection of a highly experienced new COO in the coming weeks.
IOG's ambition is to be a safe, efficient, low-carbon intensity gas producer helping to provide reliable domestic energy supply as the
We are also very encouraged by the significant gas market recovery, with
Corporate Update
IOG continues to respond and adapt as necessary to the evolving Covid-19 restrictions. In the current lockdown, we remain driven by our three fundamental priorities: protecting our people, delivering the project and ensuring business continuity.
In late 2020, IOG completed the process of bringing in house all discipline lead positions and other specialist staff, from technical and operational (HSE, subsurface, offshore project management, engineering and platforms, subsea and pipelines, drilling, pre-development assets and onshore) to finance, legal, commercial, and contracts and procurement. The Company also expects to select a new Chief Operating Officer (COO) in the coming weeks. In the meantime, the project is being closely managed by
This further team strengthening is a key part of the Company's plan to establish itself as a safe, efficient and low-carbon intensity gas producer, with the experience and expertise in house to generate, engineer and execute successive phases of growth for shareholders.
Further to this objective, in late 2020 the Board approved two new corporate policies, the Climate Change and Sustainability Policy and the Social Policy, and an updated Health, Safety and Environment (HSE) Policy. These policies can all be viewed in full via the following link: www.iog.co.uk/esg
At the end of 2020, 5,400,000 warrants over 1p Ordinary Shares in the Company expired unexercised. The number of Ordinary Shares in issue remains 488,211,155.
Phase 1 Update
Intensive work has continued across all key Phase 1 development disciplines, as well as increasing project integration activities focused on efficient completion, installation and commissioning of infrastructure in conjunction with the drilling programme over the coming months.
Fabrication of the Phase 1 Southwark and Blythe platforms at HSM's yard in Schiedam remains on track for mechanical completion later in Q1 2021. Construction of both jackets is proceeding alongside installation and testing of topside equipment including risers, helidecks, controls, communications and integrity management systems. Transport and installation (T&I) of the platforms at the field locations is planned for Q2 2021, in coordination with drilling operations.
Over Q4 2020, IOG's subsea and pipelines contractor
Detailed well design for the drilling campaign is on track to complete in Q1, with the first development well now expected to spud by early Q2. Contracting of Tier 1, 2 and 3 drilling services, logistics and tangibles is also now well advanced, while permit applications and risk assessments continue in parallel.
IOG safely and successfully completed all planned tie-ins to the Perenco LAPS facilities during the regular maintenance shutdown of the Bacton gas terminal in
An updated assessment of expected Phase 1 outturn cost versus budget is expected later in Q1, once detailed well design is complete and key operational windows have been further defined.
IOG is also stepping up preparations for a competitive gas sales tender process for the initial years of production, on behalf of the IOG-CalEnergy Resources (
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Patrick d'Ancona
About IOG:IOG owns and operates a 50% stake in substantial low risk, high value gas reserves in the
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