North Sea focused oil energy firm Independent Oil & Gas plc (IOG) announced Thursday that it is in the “advanced stages” of planning the upcoming Skipper well, located in license P1609.
The company is progressing discussions and documentation with a “major” North Sea rig provider to use a semisub rig to drill the Skipper appraisal well, according to IOG, and terms have been agreed with GE Oil and Gas to provide wellheads and related equipment for this well and additional subsea equipment for subsequent Skipper development. IOG has also stated that discussions are ongoing with other service providers for the rig as well as vessel, helicopter and logistics support and the group is progressing its plans to raise sufficient additional capital to ensure the Skipper well is fully funded.
IOG management estimates that the recoverable oil from Skipper is 34.1 million barrels, based on a recovery factor of 25 percent, compared to the historic CPR estimate of 19 percent. Successful flow tests from nearby heavy oil fields substantiate the company’s estimate of a 25 percent recovery factor.
Mark Routh, CEO of IOG, commented in a company statement:
“Despite the challenging market conditions, we are making great progress towards drilling this transformational well for IOG. Drilling this well on Skipper secures the license, allows IOG to complete the agreed acquisition of 50 percent of the license from Alpha and, subject to OGA and DECC approval, will see IOG become a license operator in the UK Continental Shelf. The results from the well should allow us to prepare the field development plan, which upon approval will convert this contingent resource into proven reserves.
“This would see a more than ten-fold increase in IOG’s proven reserves. We are absolutely committed to the future of the North Sea and whilst this may be seen as a counter cyclical investment, we are confident that the economics are robust at today’s prices and will only improve if and when commodity prices recover.”
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