IOG PLC (AIM:IOG)’s Southwark A2 well is now expected to come onstream by mid-January, the UK gas and infrastructure operator said in an update on current production.
The A2 well test and clean-up is planned for next week, with final hook-up and commissioning and safety reviews then leading to Southwark first gas by mid-January, said the AIM-traded group.
Before the latest update, the group had expected first gas from Southwark to start in mid-December.
The update follows a management shake-up in October after the group revealed problems across its portfolio of gas assets in the North Sea which resulted in downgrades to production guidance, reserves and stoked concerns over the group’s liquidity position.
"Operationally, the new leadership is making progress, but we still see room for improvement over coming months,” said new chief executive Rupert Newall in a statement today.
“We are proactively engaged in improving not only our own team's performance but also that of our duty holders. Bringing new wells onstream, improving platform reliability and managing liquids flows will enable us to maximise production and cash flow.”
The Southwark A1 well, where drilling has been challenging, is expected to strengthen the group’s production profile from early in the second quarter of 2023 and the company then expects to drill the Blythe H2 well directly after A1 in the first half of 2023.