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March 22, 2015

Independent Oil and Gas adds Hambleton discovery to UK North Sea portfolio

UK-based Independent Oil and Gas (IOG) has added the Hambleton discovery to its assets after its license covering the 48/22c block was extended by 42km².

UK-based Independent Oil and Gas (IOG) has added the Hambleton discovery to its assets after its license covering the 48/22c block was extended by 42km².

The company was awarded the block, which also features the Elgood discovery, in 2014.

Century Exploration discovered Hambleton in 2005. It is currently estimated to have six billion cubic feet of recoverable resources.

IOG predicts that there could be even more gas in Hambleton, and the company said by reprocessing 3D seismic data it can upgrade the resource to around 26 billion cubic feet.

"With gas prices remaining strong and rig rates and other service costs coming down, we believe this is the right time to be increasing our gas resources as part of our gas hub strategy."

The company also believes it could potentially tie-in Hambleton to the nearby Blythe development.

Negotiations are currently underway with various parties on the reprocessing of the 3D seismic data.

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IOG CEO and interim executive chairman Mark Routh said: "We are delighted to have been awarded the increased area we requested on this licence, which potentially increases the commercial resources within our southern North Sea gas hub.

"With gas prices remaining strong and rig rates and other service costs coming down, we believe this is the right time to be increasing our gas resources as part of our gas hub strategy."

IOG said it continues to work on the potential co-development of Cronx and Elgood, and is in asset level negotiations regarding the funding of a well on Cronx.

Talks on the funding of other assets in the portfolio are also continuing. The FDP application for Blythe is expected to be submitted by September.

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