North Sea-focused developer Independent Oil & Gas (IOG) has struck a £468,000 deal to buy a licence close to its existing Blythe field.
The Aim-quoted firm plans to spend about £6.25 million on a pilot well in November and said the discovery has the potential to contain more than 17.6 billion cubic feet of gas, or 3.4 million barrels of oil equivalent.
IOG will rename the discovery as Cronx once the acquisition from Swift Exploration completes next month, and chief executive Mark Routh said the move would mark its first project as a fully-qualified operator.
He added: “We are delighted to have secured this asset at a low upfront cost and modest future consideration which will be paid from production revenue.
“IOG’s strategy is to develop hubs in the North Sea and this acquisition is further delivery of that strategy.”