StockMarketWire.com - Independent Oil and Gas has made a firm commitment to the Oil and Gas Authority to drill an appraisal well on the Harvey licence within two years.

IOG said a competent person's report by ERC Equipoise confirmed gross mid-case unrisked prospective gas resources for the Harvey structure of 114 BCF, in line with management estimates

Harvey lies directly between IOG's Blythe and Vulcan Satellites hubs. Upon successful appraisal, Harvey gas could be exported via the nearby Thames Pipeline, in line with IOG's hub strategy.

The CPR said there was a minimum 45 BCF, most likely 114 BCF, maximum 286 BCF gross unrisked prospective gas resources on the Harvey structure.

Other highlights include:

- Most likely 90 BCF on the Harvey structure licensed 100 per cent by IOG

- CPR assesses geological chance of success at 50%

IOG chief executive and interim chairman Mark Routh said: 'It is very encouraging that the prospective resources in the Harvey structure have been independently confirmed to be in line with management estimates.

'The down-dip well demonstrated the presence of gas in the system and the presence of good reservoir quality in the Harvey area.

'This makes the maximum case of recoverable gas a compelling target and in that context, we are very excited to commit to the appraisal well.

'If we proved up the most likely gross resource number, Harvey would be the largest field in our gas portfolio and its economics would be significantly value accretive for IOG.

'We look forward to providing details on the well plans in due course.'








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