Gas producer IOG is hoping to rectify production setbacks at its Southwark field off the coast of Norfolk with hydraulic stimulation operations that are expected to begin next week.
According to the company, first gas is expected from its A2 well by the end of the year, subject to stimulation progress and operational risks. The stimulation vessel SLB Bigorange XVIII has been mobilised to Southwark.
A resumption plan has also been agreed for the Southwark A1 well, and first gas is expected from it in the second quarter of next year.
North Sea-focused IOG cut its production guidance in October for the second time in three months amid long-running technical delays to drilling at the A1 and A2 wells on the Southwark field, which are key components of its core Saturn Banks development.
READ MORE: Shares in North Sea firm plunge as it slashes gas output forecast
Last month's announcement triggered a slump of more than 60 per cent in IOG's share price and was quickly followed by the departure of chief executive Andrew Hockey, who has been replaced by chief financial officer Rupert Newall.
"The IOG team is addressing recent operational challenges in order to restore forward momentum across the business," Mr Newall said.
"Our new COO Dougie Scott and I have set clear short, medium and longer-term objectives that can unlock shareholder value from our diverse portfolio of gas and infrastructure assets. I am much encouraged by the renewed focus and commitment of everyone at IOG to mitigate risks and deliver these objectives."
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