Independent Oil and Gas plc announced Tuesday that its wholly owned subsidiary, IOG North Sea Limited, has signed a Sale and Purchase Agreement to acquire an additional 50 percent in blocks 48/22b and 48/23a in the Southern North Sea from Alpha Petroleum Resources Limited.
The deal, which includes the Blythe gas discovery, will see IOG pay an initial consideration of $2.1 million and a deferred payment of a further $5 million at first gas. Blythe needs no further appraisal and this transaction will immediately double IOG’s independently verified 2P reserves by 17.2 billion cubic feet (Bcf) to 34.3 Bcf or 6.1 million barrels of oil equivalent (MMboe).
Upon completion of the acquisition and the approval from the Oil and Gas Authority, IOG will become operator and will own 100 percent of the license.
IOG CEO Mark Routh commented in a company statement:
“We are delighted to announce the signing of the SPA to acquire the remainder of the highly attractive Blythe gas discovery. This transaction not only adds material 2P reserves of 17.2 BCF at a very low cost equivalent to $2.31 per barrel of oil equivalent, but also more importantly gives the company 100 percent ownership and full control of the future development of Blythe. We can now move ahead to co-develop Blythe with our other assets in surrounding licences which are 100 percent owned by IOG in line with our hub strategy. Our next task will be to deliver the Field Development Plan for Blythe to the OGA and work on that has already commenced.
“Upon completion of this Blythe acquisition, the company’s combined estimate of 2P reserves in Blythe and 2C resources in Skipper will be 40.2 MMboe. When we add the 2C resource estimates in the Cronx, Elgood and Harvey discoveries, which should be co-developed with Blythe, this 2P plus 2C number rises by 8.6 MMboe to 48.8 MMboe.”
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