Independent Oil and Gas plc is pleased to provide an operational and funding update for the upcoming well on Skipper.

•IOG is at the advanced stages of planning the Skipper well. This will be a vertical well drilled to 5600ft with the primary objective of retrieving good quality reservoir condition oil samples in order to optimise the Skipper field development. The Directors believe an approved field development plan on Skipper would convert the Board's estimated 34.1 MMBbls of contingent resources into 2P reserves. The AGR Tracs' historical CPR estimate for Skipper is 26.2 MMBbls 2C resources, using a 19% recovery factor. •The secondary well objective is to drill two mapped reservoir structures beneath the Skipper oil field in the Lower Dornoch and Maureen formations, in which the CPR authors have mapped structures which could contain an additional 46 MMBbls of oil in place. If oil is present in these structures these accumulations would be co-developed with Skipper in line with the Company's hub strategy •IOG is progressing discussions and documentation with a major North Sea rig provider to use a semi-submersible drilling rig to drill the Skipper appraisal well, with costs to be met on a mostly deferred basis. The base case is a 25 day contract. Subject to finalisation of contract and funding the rig is ready to mobilise at short notice. This remains subject to their board approval. •Commencement of drilling is contingent upon the timing of approvals relating to well permitting, completion of well funding, completion of the acquisition of the other 50% of Skipper, and transfer of operatorship. All technical and environmental submissions including well permits are progressing with the OGA and DECC.

Tags: Independent Oil and Gas plc