Skipper well to spud next week

UK explorer Independent Oil and Gas (IOG) is due to spud an appraisal well on the Skipper oil discovery next week.

The Skipper prospect, 100% owned by IOG, is in Block 9/21a in license P1609 in the northern North Sea. IOG says success of the well would be "transformational" for the company. 

The will be drilled using Transocean’s Sedco 704 semisubmersible, which is expected to come on contract on or around 20 July. The well is expected to take 22 days to drill, with initial results mid-August.

Skipper will be drilled to 5600ft with the primary objective of retrieving good quality reservoir condition oil samples in order to optimize the Skipper field development plan and to drill two mapped reservoir structures beneath the Skipper oil field in the Lower Dornoch and Maureen formations.

Directors believe an approved field development plan on Skipper would convert IOG's estimated 34.1 MMbbl of contingent resources into 2P reserves.

IOG has funded some of the drilling costs by issuing new shares worth US$1.7 million and awarding them to Transocean. Further shares will be issued to pay the balance of the costs and demobilization costs. Another contractor involved in the well is also being issued shares to cover its costs.