NORTH Sea-focused Independent Oil and gas has said it expects to start drilling off Shetland in July after putting plans on hold following the oil price slump.
The London-based firm said it has confirmed arrangements to drill an appraisal well on the Skipper oil find off Shetland next month in a move it said signalled commitment to the North Sea.
A successful appraisal well would allow the company to firm up estimates that Skipper contains around 34 million barrels oil.
The company had planned to drill the well in the first quarter but in January postponed the exercise citing difficult market conditions and very poor weather.
It has decided to go ahead after securing £14m loan funding from London-based financiers. Directors have said this will allow the firm to capitalise on the opportunities created by the downturn in the North Sea triggered by the crude price slump.
Chief executive Mark Routh is confident the company could make money from North Sea production even at current crude prices.
He said: “This well should be transformational for IOG and we are delighted to drill it next month with a significantly reduced estimated duration and cost.”
The well is set to take 22 days rather than 25. The expected cost has fallen by around 10 per cent to £6.8m.
Mr Routh added: “The willingness of our financial backers and contractors to co-operate in a progressive way to make this well happen amid these tough industry conditions is testament to a new collaborative spirit in the North Sea.”
In January the new Oil and Gas Authority granted an extension to the Skipper licence to the end of the year, as Independent negotiated with funders and contractors.
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