The acquisition is conditional on Verus completing the transfer of certain licenses into Oyster with recoverable resources of 320.7 bcf.
Oyster will hold 100% of blocks 49/21a (license P039), 49/21d (P2122), 48/25b (P130) and 49/21c (P1915) in the UK southern North Sea (SNS).
They contain the Vulcan East, Vulcan North West and Vulcan South fields, collectively known as the Vulcan satellites. All are 30-45 km (19-28 mi) east of IOG’s Blythe field and are said to require no further appraisal.
Currently the company is in discussions on an export route for its proposed SNS gas hubs. Once offtake arrangements are in place IOG will prepare field development plans.
CEO Mark Routh said: “This acquisition expands our hub strategy; to gain control over a number of dormant discoveries that can be developed through common existing infrastructure, thereby generating significant economies and capturing many synergies.
“Once all announced transactions have completed, we should have more than 100 MMboe of low-risk resources in our portfolio. This will be approximately two-thirds gas and one-third oil which provides an excellent springboard for us to become a significant development and production company.”
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