Independent Oil and Gas has struck a near-£500,000 deal to extend its North Sea presence after snapping up a new block close to the Blythe field.
The London-based firm, which holds a 50% stake in Blythe, has paid £468,000 to take full control of the Cronx gas discovery licence.
Further payouts of up to £13.2million would due depending on the field’s performance once in production.
The Cronx find, made in 2007 by Perenco, is thought to contain at least 17.6billion cubic feet of gas and sits 14km north-west of the Blythe field.
The licence for the field is due to expire at the end of April, with Independent now looking for an 18-month extension from the Department of Energy and Climate Change.
“We are delighted to have secured this asset at a low upfront cost and modest future consideration which will be paid from production revenue,” said Independent chief executive Mark Routh.
“This would be our first well as a fully qualified operator and we have the team and experience to deliver an optimal result.
“Based on the work ERC Equipoise has done and the additional work carried out by our own technical team we are confident that the CPR base case of a 17.6 BCF 2C resource will be confirmed as the minimum 2P case in due course, which would more than double our proven reserves with potential for a greater increase.”
If the go-ahead is given by DECC for an extension to the Cronx licence, the company said it intended to start drilling on the find in November this year. Gas from the field would be exported via the Blythe hub.
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