Independent Oil and Gas Plc has provided an upgrade on its core development project in the U.K. Southern North Sea, the company said on Jan. 8.

The company’s two-phase Core Project has been expanded to include the 108 billion cubic feet (Bcf) of 2C contingent resources assigned to the Goddard discovery by ERC Equipoise, and now comprises a total of 410 Bcf of 2P+2C reserves and resources across six discovered gas fields.

This significantly enhances management’s Core Project economics, delivering 40% IRR, £358 million (US$455 million) post-tax NPV10 and peak annual production rate 146 MMcf/d (up from 114 MMcf/d) with no increase in funding requirement.

Goddard’s 108 Bcf of 2C contingent resource is discovered gas which is development ready. Management believes these resources can be reclassified to reserves upon submission of the field development plan to the Oil & Gas Authority, which is planned for 1H 2019.

As previously announced, the Core Project is now technically ready to enter the execution phase and Phase 1 pre-final investment decision (FID) engineering is now complete.

Geotechnical surveys for design and installation of the Southwark and Blythe production platforms were successfully completed in December 2018.

Preparations continue for drilling the Harvey appraisal well, which management estimates has Prospective Resources in the low/best/high case of 85/129/199 Bcf and 63% geological chance of success. In the event of Harvey success, IOG’s portfolio would deliver 77% IRR and £688 million (US$876 million) post-tax NPV10.

Funding plans for the Core Project are advancing as of November 2018 with the objective of FID within first-quarter 2019. First gas is planned to be delivered within 20 months of FID.

The company is in the final stages of signing documentation for purchase of the onshore Thames Reception Facility, where it’s fully-proven, 550 MMcf/d capacity Thames Pipeline lands at Bacton Gas Terminal on the North Norfolk coast. The pipeline will provide a low-cost, safe and efficient export route for IOG’s assets straight to the U.K. market with future commercialization opportunities for new asset additions to IOG’s portfolio and for third party gas.

Offshore