31 December 2021

IOG plc

Phase 1 Drilling Campaign: Southwark Development Well Spud

IOG plc (IOG, or the Company), (AIM: IOG.L), the Net Zero UK gas and infrastructure operator focused on high return projects, is pleased to announce the spudding of the first Southwark development well.

The Noble Hans Deul jack-up rig mobilised from repairs in Dundee on 3 Dec 2021 and initially jacked up at the Southwark Platform on 9 Dec. After preparations for drilling, the first Southwark well spudded at 2100hrs on 30 December.

First Gas is expected at Southwark in mid-2022 after the planned installation in Q1 2022 of the 6km Saturn Banks pipeline extension to the Southwark platform. The rig is then scheduled to move on to drill the Goddard and Kelham North/Central appraisal wells while analysis of reservoir and production data from Southwark development wells 1 and 2 will inform an optimal Southwark 3 well plan.

Andrew Hockey, CEO of IOG, commented: 

"We are pleased to have overcome the technical issues with ROV equipment and to have completed the spud can surveys needed to allow us to spud the first development well at Southwark, another important step for IOG in delivering our Phase 1 project. The Southwark wells have been meticulously planned by the IOG drilling, subsurface, subsea and HSE teams in collaboration with our main drilling contractors Noble Corporation, Petrofac and Schlumberger, our Platform Duty Holder ODE Asset Management and our partner CalEnergy Resources (UK) Limited and fully integrate the learnings from the Elgood and Blythe wells. We have a very clear collective focus on ensuring safe and efficient performance leading successfully to First Gas in mid-2022 from the Southwark Field."

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.

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IOG's Saturn Banks Project targets a gross peak production rate of 140 mmscf/d (c. 24,000 Boe/d) from gross 2P gas reserves of 302 Bcfe¹ and management estimated 2C gas Contingent Resources of 132 Bcfe, via an efficient hub strategy based on co-owned infrastructure. In addition to its 2P reserves at Blythe, Elgood, Southwark, Nailsworth and Elland and 2C contingent resources at Goddard, it has management estimated gross 2C contingent resources of 23 Bcfe at Abbeydale and gross unrisked mid-case prospective resources of 36 Bcfe at Kelham North, 42 Bcfe at Kelham Central, 58 Bcfe at Thornbridge, 31 Bcfe at Southsea, 28 Bcfe and 19 Bcfe in the two Goddard flank structures. The Orrell discovery, with management estimated gross 2C contingent resources of 42 Bcfe, also lies approximately 50% on the P2442 licence held 50% by IOG. IOG also holds a 50% operated stake in Licence P2589, containing the Panther and Grafton gas discoveries with management estimated gross mid-case contingent resources of 46 Bcfe and 35 Bcfe respectively. In addition, IOG continues to pursue value accretive acquisitions to help generate further significant shareholder returns.

¹ERC Equipoise Competent Persons Report: October 2017, adjusted by Management to account for updated project timing and compression