NORTH Sea-focused Independent Oil and Gas has said it is making progress with plans to develop a field off eastern England, amid tough times in the area.
London-based Independent said it expects to submit a Field Development Plan for the Blythe field to the authorities by the end of the year.
The plan would involve Independent developing a find which was made by Burmah 50 years ago.
While sector players are braced for a long period of low oil and gas prices, Independent noted recently that work on seismic survey data suggested it may be possible to recover more gas from Blythe than had been thought.
In its interim results announcement in September Independent said industry cost structures had finally started to re-adjust to the ‘lower for longer’ oil price reality in which it has operated since 2014.
The Aim-listed company has won a one year extension to the Blythe licence from the Oil and Gas Authority, until 31 December 2017. This signals the regulator believes there is a reasonable chance of Independent making progress.
The company’s chief executive Mark Routh said: “Blythe is at the centre of our first gas hub so this licence extension is welcomed and is absolutely essential.”
Independent has shown its confidence in the prospects for the North Sea by using acquisitions to speed growth amid the downturn. In June, the company acquired the 50 per cent of Blythe it did not own from Alpha Petroleum Resources for an initial £1.5 million.
It secured around £14m loan funding in March.
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