Independent Oil & Gas Plc (IOG.L) Announced that the Maersk Resilient rig spudded the Harvey appraisal well on 6 August 2019. As previously indicated, completion of the well is expected to take approximately two months in the success case. The primary objective of the well is to confirm gas volumes which management estimate at 85/129/199 BCF Prospective Resources in the Low/Best/High case, with a 63% Geological Chance of Success, and secondly to demonstrate reservoir deliverability. If successfully appraised, the additional scale and synergies of a Harvey development could substantially enhance the portfolio's overall value and returns. On completion of the farm-out transaction announced on 26 July 2019, the company's designated partner, CalEnergy Resources Limited (CER), will have the option to acquire 50% of the Harvey licences within three months of completion of the appraisal well. If this option is exercised, CER will pay an additional £20 million to the company and a £0.95/MCF royalty on all of CER's life-of-field net gas production from Harvey.
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