Independent Oil and Gas (IOG) has confirmed the presence of gas after drilling the Harvey appraisal well 48/24b-6 in the UK southern North Sea.
Situated in the license P2085, the well was drilled by Maersk Resilient to a total depth of 7,537ft Measured Depth (MD) in the Permian Leman Sandstone reservoir. Initial assessment suggests that the site hosts a 49ft gas column at the top of the reservoir.
The wireline dataset acquired in the campaign along with core data will now be evaluated to create a revised technical assessment of reservoir gas volumes and deliverability.
It will also include full seismic remapping of the site based on the Vertical Seismic Profiling (VSP) results. IOG will use the revised assessment to determine the options for a potential Harvey development.
Harvey is situated within IOG’s asset portfolio near the Thames Pipeline export route. If the assessment finds that low-cost subsea development is feasible at the site, it may be tied-back to the Blythe platform.
IOG CEO Andrew Hockey said: “We have now confirmed a gas discovery at Harvey and are kicking off the analysis required to reach a definitive view on resource range, reservoir quality and deliverability.
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“We will then evaluate Harvey’s development potential in the context of our Core Project, which will be fully-funded at Farm-out completion.
“Our gas hub strategy implies a relatively low commerciality threshold for this discovery, which lies in the heart of our core asset base close to the Thames Pipeline.”
In July 2019, IOG signed agreements with CalEnergy Resources (CER) to farm out half of its assets in the Southern North Sea.
CER has the option to acquire 50% of the Harvey licences within three months of completion of the appraisal well. If CER exercises the option, it will pay an additional £20m to IOG as consideration. IOG will also receive a £0.95/MCF royalty on all of CER’s net gas production from Harvey.