North Sea player’s shares surge on key fields update

The Blythe production platform in the North Sea Picture: IOG
The Blythe production platform in the North Sea Picture: IOG

SHARES in IOG surged 37% to 16.1p yesterday after the North Sea independent reported realisation of a “key objective” in addressing “operational challenges”.

The company said production had been restarted as planned from its Blythe and Elgood fields into the Saturn Banks pipeline system (SBPS), after completion of shutdown works.

Chief executive Rupert Newall declared: “I am very pleased to confirm Saturn Banks phase-one production has been safely restarted after successful completion of shutdown activities. This was one of our top priorities as the new leadership team and the real commitment shown across the team to meet this key objective bodes well for our continuing work to address recent operational challenges.”

READ MORE: Ian McConnell: Cat has critics’ tongues as SNP backing of Prestwick Airport pays off 

Flagging progress with the “A2” well on IOG’s Southwark field, he added: “In parallel, with hydraulic stimulation underway at the A2 well, we are equally focused on bringing Southwark onstream in a safe and timely manner, the next of a series of key objectives we have set to deliver the value in our portfolio.”

READ MORE: Ian McConnell: Latest twist in Tories’ bizarre Brexit soap opera shows unseemly rush

IOG said: “Final connection, dewatering and backgassing of the SBPS outer section to Southwark have all been successfully completed, bringing it up to pressure ahead of Southwark first gas.”