IOG shares plummet as suspends Southwark A2 well due to low gas rates

(Alliance News) - IOG PLC on Monday said it is suspending the Southwark A2 well as its stabilised rate of 2.5 million standard cubic feet per day, at a flowing wellhead pressure of 1,185 pounds per square inch, was too low.

IOG shares fell 37% to 5.07 pence each on Monday morning in London.

The North Sea-focused gas and infrastructure operator expects a joint venture decision on whether to resume the Southwark A1 well or prioritise the Blythe H2 well.

"We are clearly very disappointed with the Southwark A2 outcome, which is a very significant departure from our plans and expectations. We are already working hard to incorporate the data and learnings from A2 into the A1 well plan and will assess the implications for other similar assets in our portfolio," said Chief Executive Officer Rupert Newall.

By Tom Budszus, Alliance News reporter

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