Independent Oil and Gas is delighted with a recent competent person's report for the Harvey licence.
It said the report by ERC Equipoise Limited estimated dry hole costs of the planned Harvey well at £8.5m, versus a licence expected monetary value of £79m.
IOG said it saw compelling case for drilling Harvey and was actively considering the timing.
Chief executive and interim chairman Mark Routh said: 'We are delighted with the result of the CPR and the EMV of the Harvey structure on our licence being determined at £79m.
'This clearly validates our commitment to drill the well on what has the potential to become our largest gas asset.
'The value of Harvey is strengthened by the synergies with our Southern North Sea gas development hubs, notably shared use of a fully owned Thames Pipeline gas export route.
'Alongside these two hubs, the Harvey appraisal opportunity therefore represents very material upside to IOG even on the mid case volumes.
'We are therefore actively considering how soon we can drill the well.
'We look forward to updating all stakeholders in due course.'
At 8:23am: (LON:IOG) Independent Oil Gas PLC share price was +1.13p at 21.63p