Independent Oil and Gas Plc (LON:IOG) is being forced to rethink its plans for the Skipper field as initial results from a pivotal appraisal well are incompatible with the group’s pre-drill view of the project.
New well results reveal the oil at Skipper to be heavy, 11° API, and significantly more viscous than previously expected.
It may now take several months for the company to determine whether or not the field can be commercially viable, IOG said.
"The analysis of the oil retrieved from the appraisal well indicates that Skipper is a heavy oil discovery with similar gravity to other nearby heavy oil fields,” it added.
“The initial oil analysis results are incompatible with our observations, therefore we are now reviewing our strategy to establish the commerciality of Skipper.”
Heavy oil typically flows at a slower rate, and can need additional production equipment to be produced commercially.