IOG finds heavy oil, ups resource estimate with Skipper appraisal well

LONDON -- Independent Oil and Gas (IOG) has announced the initial results from its first operated appraisal well on the Skipper oil discovery. The well, which is wholly owned by IOG, lies in Block 9/21a in license P1609 in the northern North Sea.

The appraisal well was drilled to a total vertical depth of 5,578 ft and achieved its primary objective of retrieving oil samples from the Skipper reservoir in order to optimize the Skipper field development plan.

The crest of the Skipper reservoir in the appraisal well was found to be 44 ft shallower than prognosed. As a result, management’s estimate of the most likely oil in place has increased from 136.5 MMbbl to 142.6 MMbbl.

However, although the oil is moving in the reservoir, the first sample results indicate that the oil is approximately 11° API and has a significantly higher viscosity than expected. These measurements do not align with the company’s observations and therefore the remaining samples need to be reviewed and tested.

Mark Routh, CEO of IOG, added, “The analysis of the oil retrieved from the appraisal well indicates that Skipper is a heavy oil discovery with similar gravity to other nearby heavy oil fields. We have observed that the oil moves in the reservoir and is mobile at surface at ambient conditions. The initial oil analysis results are incompatible with our observations, therefore we are now reviewing our strategy to establish the commerciality of Skipper. ”