Shares in IOG PLC (AIM:IOG) bounced over 12% to 4.43p on Tuesday morning after the gas producer said first gas has been "safely delivered" from its Blythe H2 well in the North Sea, following recent hitches.
Last week, the company revealed a potential mechanical blockage downhole had been found during well clean-up and testing operations at the second Blythe well in the Saturn Banks project in the UK Southern North Sea.
Today, it said first sales gas had been delivered into the Saturn Banks reception facilities and Bacton terminal on Monday, three months and one week after the spud date, including 34 days lost.
IOG said the well is in the ramp-up phase towards an expected initial maximum rate, with a maximum well test dry gas rate of 22.8mln standard cubic feet per day (mmscf/d) and 280-336 barrels per day (bbl/d) of condensate.
Chief executive Rupert Newall hailed collaboration with well operator Petrofac Ltd, among others, and said equipment is being sent to resolve the apparent downhole mechanical blockage, "which if successful could increase H2 flow rates by around month end to the 30-40 mmscf/d range that we guided pre-well".
"In addition, we continue to work very actively on next steps beyond H2 and expect to provide further updates shortly."