Operational Update

1 June 2022

IOG plc

Operational Update

IOG plc ("IOG", or "the Company"), (AIM: IOG.L), the Net Zero UK gas and infrastructure operator focused on high return projects, provides an operational update.

On 23 May, the Company announced that Saturn Banks production had been shut in by Bacton terminal operator Perenco UK (PUK) due to a drainage system deficiency in the terminal condensate stabilisation unit's (CSU) two recycle compressors. The Company announced that the shut-in was expected to last for approximately a week before a phased return to production could begin.

On 31 May, following a PUK modification to one of the CSU's compressors, Saturn Banks production was duly restored at an initial level of approximately 30 mmscf/d. As previously indicated, modification of the second compressor is expected to take approximately one further week. This will then enable Saturn Banks production to be gradually restored to its prior stabilised levels of 55-65 mmscf/d over the following weeks. This is expected to be a gradual process to manage the high levels of liquids currently being worked through the Saturn Banks Pipeline System.

Andrew Hockey, CEO of IOG, commented:

"IOG, Perenco and ODE Asset Management have collaborated well to facilitate rapid execution of the PUK terminal modification and allow our production to be resumed at 30 mmscf/d. We look forward to a phased build up to double that level as fast as technically feasible over the coming weeks."

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.

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About IOG:

IOG is a Net Zero UK gas and infrastructure operator focused on high-return projects. The Company's operations are currently concentrated around its offshore and onshore Saturn Banks infrastructure in the UK Southern North Sea. Phase 1 of its Saturn Banks Project, which started production in March 2022, entails the commercialisation of the Blythe, Elgood and Southwark gas fields through this infrastructure. Phase 2 of the Saturn Banks Project entails the Nailsworth, Goddard and Elland gas discoveries, which are subject to future investment decisions and expected to be commercialised through the same export infrastructure. The Company also holds further licences with additional resources including the Abbeydale, Panther and Grafton gas discoveries, the Kelham North, Kelham Central, Thornbridge and Thornbridge Deep prospects, and part of the Orrell gas discovery. Currently, all IOG's licences are held 50:50 with its joint venture partner CalEnergy Resources (UK) Limited and operated by IOG. In addition, the Company continually evaluates further opportunities for accretive portfolio additions to help generate additional shareholder returns. Further details are available at www.iog.co.uk.  

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