OG is in discussions with contractors about deferring costs.

IOG ups estimates at North Sea discovery

LONDON, November 12, 2015 – UK-based development and production junior Independent Oil & Gas increased its recoverable resources estimate at the Skipper heavy oil discovery in the UK North Sea on Thursday.

The company is seeking funding to drill an appraisal well while retaining a 100-percent share in the asset.

It now supposes the find in block 9/21a could produce 34.1 million barrels of oil, based on an estimated recovery factor of 25 percent. The company’s previous estimate was 19 percent.

Following the revision, Independent Oil & Gas has established a breakeven Brent price of $34 per barrel on an estimated 13-well floating production, storage and offloading development.

The company agreed earlier in 2015 to buy Alpha Petroleum Resources’ 50-percent interest in the block, a deal dependent on it sourcing adequate funding for the appraisal probe.

The company said it was in “advanced stages” of planning the well, set to be drilled to 1,707 metres.

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