The primary objective of the well is to confirm gas volumes which management estimate at 15/22.8/35.2 MMboe Prospective Resources in the Low/Best/High case, with a 63% Geological Chance of Success, and secondly to demonstrate reservoir deliverability.
The well has reached the targeted reservoir in the Permian Leman Sandstone reservoir, meeting the work commitment for licence P2085. Two 27 m cores have been acquired in the reservoir along with a full suite of wireline logs, including pressure test and fluid samples, as well as Vertical Seismic Profiling.
Initial analysis of the wireline data demonstrates the presence of a 15 m gas column at the top of the reservoir.
The comprehensive wireline dataset acquired in the well will now be analyses along with core data and integrated into a revised technical assessment of reservoir gas volumes and deliverability, meeting the primary objectives of the well. This analysis will include full seismic remapping based on the results of the VSP.
Potential for development
This assessment will be used to examine the options for potential Harvey development. Harvey is centrally located within IOG’s asset portfolio, close to the Thames Pipeline export route. In the event that Harvey is of a size commensurate with a low-cost subsea development, it lies well within tie-back range to the Blythe platform which is a key part of the Core Project Phase 1 infrastructure.
On completion of the farm-out transaction announced on 26 July 2019 (“Farm-out”) the Company’s designated Core Project partner, CalEnergy Resources Limited (“CER”), will have the option to acquire 50 per cent of the Harvey licences within three months of completion of the appraisal well. If this option is exercised, CER will pay an additional £20 million to IOG and a £0.95/MCF royalty on all of CER’s life-of-field net gas production from Harvey.