Page 16 - EurOil Week 06 2023

EurOil PROJECTS & COMPANIES EurOil

More setbacks for IOG at Southwark field

UK INDEPENDENT Oil and Gas (IOG) saw successfully cut from 1,500 barrels per day to
its share price slump on February 6 after only 380 bpd on average. But the stabilised gas
IOG saw its share announcing that it had suspended operations rates were limited to 2.5mn cubic feet (71,000
price slump after at its A2 well on the Southwark field after cubic metres) per day at a flowing wellhead
disappointing news at remediation work failed to bolster flow rates. pressure of 1,186 psi.
the A2 well. In a statement, the company said it had IOG’s technical advisors are still review-
finished remediation work and flow testing ing the well test data. But A2 will now be
at the long-delayed A2 well, but that “rates do suspended while the company evaluates
not currently justify hooking up the well for whether cycled production and other “alter-
production.” native longer-term remediation strategies” are
This marks a further setback for IOG, which feasible.
had been targeting first gas from Southwark by Meanwhile, IOG and its Saturn Banks part-
mid-January. An earlier delay was caused by ner CalEnergy will take a decision on whether
issues with rig stability. Shares in the company to resume work at Southwark’s other well, A1,
had tanked to only GBP0.049 ($0.059) by the or transport the Shelf Perseverance rig to pri-
end of February 6, versus GBP0.0829 at the oritise drilling at the Blythe field.
end of the previous trading session. Further regulatory approvals are needed to
Southwark is to be developed as part of start work at the H2 well at Blythe, but prior-
the first phase of IOG’s Saturn Banks project, itising that project would give IOG more time
along with the Blythe and Elgood fields. to incorporate analysis from A2, which will be
IOG said that it had completed three of the “pivotal” for drawing up a plan for A1’s com-
six stimulated zones and perforation of two pletion, CEO Dougie Scott said.
other zones within the A2 well. The borehole “Moving forward, a key focus area will be
was then flow tested both on a sustained basis assessing the viability of hydraulic stimulation
to achieve stable rates and on a cycled basis. in reservoirs with low column height above
During the work, water production was free water,” Scott said. ™

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