IOG plc, the Net Zero UK gas and infrastructure operator focused on high return projects, has released an updated Investor Presentation incorporating production data up to 30 June 2022.
Andrew Hockey will present on IOG at the Proactive One2One Investor Forum this Wednesday 6 July in London. Registration is available here: www.proactiveinvestors.co.uk/register/event_details/400
Andrew Hockey, CEO of IOG, commented:
"We are very pleased to exit the half year with Saturn Banks producing 60 mmscf/d gross, double the level of one month ago and at the top end of our projected 2H22 range. Our resilience measures on Blythe and Elgood are starting to bear fruit, with 93% uptime in June. After completing Southwark East in the coming days, we will resume drilling the Southwark West well, with both wells targeted for first gas in Q4. This will be followed directly by two exciting appraisal wells at Goddard and Kelham targeting further growth opportunities.
With average realised gas prices to date of 147p/therm and the forward curve for this winter currently exceeding 350p/therm (c.$250/boe), our first half progress sets us up well for a cash generative second half, even as we invest at Southwark. Our latest corporate presentation provides a detailed update on all our current portfolio activities."
Blythe and Elgood Fields Gas Production
Gas production reached 60 mmscf/d gross by the end of 1H22, up from 30 mmscf/d gross at the start of June. Over the course of June, production averaged 45 mmscf/d gross, with overall uptime of 93% and a volume weighted average realised price (VWAP) of 130p/therm.
From First Gas to the end of the half-year, gross production averaged 34 mmscf/d, with overall uptime of 59% and VWAP of 147p/therm. As previously stated, based on reservoir analysis to date and factoring in planned and unplanned downtime, gross average 2H22 Saturn Banks gas production is projected to be in the 45-60 mmscf/d range, with condensate rates of 250-350 bbl/d.
Southwark Field Development
The drilling phase of the Southwark East production well is nearly complete and the Noble Hans Deul rig is expected to resume drilling the Southwark West production well this week (the top hole section was originally drilled earlier in the programme). After this, both wells will then be hydraulically stimulated before being brought onstream. The subsea and hook-up and commissioning programmes are progressing in parallel, with first gas targeted in Q4 2022.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.