Crogga Limited has announced the appointment of THREE60 Energy, formerly Fraser Well Management, as Contract Operator to drill the Crogga Independence appraisal well (112/25a-2) on the Crogga Gas Field, offshore Isle of Man, in the East Irish Sea in 2023. THREE60 Energy has very significant drilling experience in the East Irish Sea with an excellent safety record.
Crogga Limited has completed its pre-drill evaluation of the Crogga gas field and the well will spud (start) as soon as permitting is complete. The objective is to establish commercial flow rates from the conventional Permian Collyhurst Sandstone reservoir. In the success case, Crogga could become one of the largest field developments in the East Irish Sea, comparable in size to the Douglas and Hamilton Fields in the Liverpool Bay Development, (661 bcf/110 mmboe).
If commercial production rates are established and the field is as large as expected, Crogga gas will provide energy independence and a significant increase in GDP for the Isle of Man. Revenues will be generated at no cost or financial risk to Isle of Man taxpayers. Crogga will cap gas prices at 80p/Therm for Manx domestic gas sales and local natural gas production has a smaller carbon footprint than imported gas. It is the fuel of choice to enable the Island to transition to a zero-carbon economy.
Crogga Limited is launching an Offer Memorandum (OM) today for the Independence Well Raise (IWR) of GBP 32.5 million to cover well costs. Being a Manx Company operating in Manx territorial waters it has always been mindful that, at the right moment, it wishes to provide local investors with the opportunity to participate. That moment has arrived and should IOM residents wish to invest, details are available on the Company website; https://www.crogga.im. Subscriptions will be accepted on a first come, first served basis. THREE60 Energy has converted part of their payment for operating the Independence well into shares in Crogga Limited.
A corporate update will follow when the IWR closes on 24 th February and a drilling rig contracted. If the 2023 Crogga Independence well is successful, 3D seismic and further drilling will rapidly follow to develop the Crogga field with first production of natural gas as early as 2026.
See related announcement: Crogga Limited 2023 Investment Tease (includes technical info)
Source: Crogga
