Independent Oil & Gas (IOG) has now completed its 50% farm-out transaction with CalEnergy Resources (CER) as announced in July and taken final investment decision (FID) on phase 1 of its development project. The project includes 410 billion cu ft of 2P+2C reserves and resources across six discovered southern North Sea (SNS) gas fields (Blythe, Elgood, Southwark, Nailsworth Elland, and Goddard). The farm out includes the gas fields, Thames pipeline, and Thames reception facilities while excluding the Harvey licenses. As previously announced, CER has the option to acquire 50% of the Harvey licences within three months of completion of the Harvey appraisal well 48/24b-6.
IOG has received GBP 40m as initial consideration from CER and CER’s GBP 60m carry of IOG’s phase 1 development costs will commence immediately. IOG and CER, have taken phase 1 FID, initiating the development program to deliver first gas in July 2021. IOG and CER are planning to submit a 50-50 joint application for blocks in the U.K. 32nd offshore licensing round.