UK firm Independent Oil and Gas (IOG) says it expects to award key project contactors and submit a field development plan for its Vulcan Satellites hub later this month following a report which has significantly increased reserves numbers for the fields.
Reserves number for the Vulcan Satellite fields, Blythe and Elgood fields in the UK Southern North Sea were increased to 303 Bcf 2P gas reserves (54 MMboe), previously 34 Bcf, following a competent person’s report (CPR) by ERC Equipoise (ERCE).
The Vulcan Satellite fields alone contain 248 Bcf 2P reserves, says the report, with Blythe containing 33 Bcf, in line with a 2013 CPR, and Elgood containing 22 Bcf.
Earlier this month, IOG signed a letter of intent with Heerema Fabrication Group for front-end engineering and design (FEED), and engineering procurement, construction and installation (EPCI) of up to four normally unmanned installation platforms (NUIs).
Peak production from the assets could be above 200 MMcf/d (c. 35,000 Boe/d), says the report, with further resource in the nearby Harvey field due to published in a forthcoming separate CPR.
Meanwhile, IOG has applied to register the field names for the Vulcan Satellite fields. Vulcan North West will become Nailsworth, Vulcan East will become Elland and Vulcan South will become Southwark. Nailsworth, Elland and Southwark will still collectively be known as the Vulcan Satellites.
Mark Routh, CEO and Interim Chairman of IOG said: “IOG now holds independently verified 2P gas Reserves of 303 BCF / 54 MMboe with a 2P peak production rate of more than 200 MMcf/d and a 2P NPV10 valuation of £321 million. This is a major landmark for our portfolio and clear vindication of our strategy of acquiring neglected and stranded assets at low cost, to be commercialized via our gas hub strategy using the Thames Pipeline export route."
In addition to confirming substantial volumes, the classification as reserves is a key step towards securing development funding."