Independent Oil and Gas plc ("IOG"), the development and production focused oil and gas Company, announces the results of a Competent Person’s Report (“CPR”) on the Goddard licence by ERC Equipoise Limited ("ERCE").
Highlights:

Gross mid-case contingent (2C) gas resources of 108 BCF for the main Goddard structure, plus gross mid-case unrisked prospective gas resources in two adjacent structures directly to the east of the Goddard discovery of 73 BCF, which are both in line with management estimates

Subject to appraisal, a success case scenario and development, these resources could convert to 181 BCF in the mid-case

Gross unrisked 1C/2C/3C Contingent Gas Resources are 54.3/107.8/202.8 BCF

In addition, the Low/Best/High gross unrisked prospective gas resources are 41.8/73.0/121.4 BCF. CPR assesses geological chance of success of the prospective gas resources at 48%

The chance of development is estimated as being 75%

Under the licence, which officially commenced on 1 October 2018, a firm commitment was made to the Oil and Gas Authority (“OGA”) to drill an appraisal well on Goddard within three years

Andrew Hockey, CEO of IOG commented:
“It is very encouraging that the mid-case contingent resources and the prospective resources in the Goddard structure have been independently confirmed to be in line with management estimates. This again corroborates the high quality of the work undertaken by IOG’s technical team and we are very excited to commit to the appraisal well. Once drilled, the Company would move forward to field development planning as fast as possible. Even the 2C resources case of 108 BCF would be economic to develop, but it is important to delineate the full size of this discovery with the appraisal well so that the development plan can be optimised. We look forward to providing details on the well plans in due course.”

Goddard Overview:

Goddard, previously known as Glein, lies in blocks 48/11c and 48/12b, (IOG 100%) licence P2438 which was awarded to the Company in the 30th Licensing Round. Upon successful appraisal, Goddard gas could be exported via the recently recommissioned Thames Pipeline, in line with IOG’s hub strategy.

The CPR states that the Goddard discovery has one tested fault block in which lie the contingent resources and two adjacent prospective fault blocks, one of which was penetrated by a well but was not tested. These two so-called ‘pop-up’ structures are therefore allocated as prospective gas resources under the SPE PRMS guidelines and have been allocated a 48% geological chance of success.

An appraisal well is planned to test the south-eastern extent of the Goddard discovery and to test the adjoining ‘pop-up’ structures which lie immediately to the east and adjacent to the Goddard discovery.

The commitment on licence P2348 is to reprocess 175 sq. kms of 3D seismic data to PreSDM and to drill an appraisal well within three years of licence award, which is by 1 October 2021.