12 October 2017

Independent Oil and Gas plc

CPR Confirms Significant Reserves Upgrade

Independent Oil and Gas plc ("IOG" or the "Company"), the development and production focused Oil and Gas Company, is pleased to announce the results of a Competent Person's Report ("CPR") on the Vulcan Satellites, Blythe and Elgood assets by ERC Equipoise Limited ("ERCE") as at 1 October 2017.

Highlights:

·     CPR confirms 2P gas Reserves of 303 BCF (54 MMBoe), previously 34 BCF, in IOG's UK Southern North Sea ("SNS") gas portfolio

·   2P Reserves classification applied to all of IOG's development assets: the Vulcan Satellites, Blythe and Elgood

o  Vulcan Satellites 2P Reserves of 248 BCF

o  Blythe 2P Reserves of 33 BCF, in line with 2013 CPR

o  Elgood 2P Reserves of 22 BCF

·      CPR estimates a 2P peak production rate in excess of 200 MMcfd (c. 35,000 Boe/d)

·      Significant prospective resources in Harvey to be published in a forthcoming separate CPR

CPR Process:

During 2017, IOG built its own proprietary static geological model based on interpretation of the reprocessed 3D seismic available from multiple surveys across the whole SNS portfolio.  This resulted in a robust and consistent estimation of the gas in place volumes in all the Company's SNS gas assets. This was followed by dynamic reservoir modelling and optimal well design and placement, including hydraulic stimulation modelling for the Vulcan Satellite fields.  This in turn enabled the development of production forecasts for each field.  ERCE reviewed IOG's proprietary subsurface work, production forecasts, costs and economic assumptions.  ERCE then made its own independent assessment of the recoverable Reserves from the portfolio, the project development and operating costs and the resultant economics as summarised below.

The CPR presents the economic Reserves and valuation of IOG's five development fields as at 1 October 2017 using data and information available up to 30 September 2017 and applying the PRMS standard.  The table below shows the CPR estimates of Reserves and Net Present Values, both undiscounted and discounted at 10% ("NPV₁₀") for IOG's 100% interests in the fields.

A copy of the CPR executive summary is available on the IOG website: -

http://www.independentoilandgas.com/thirdpartyreports.html

Vulcan Satellite Field names:

As part of the field determination process, IOG has formally applied to register the field names for the Vulcan Satellite fields.  Subject to the approval of the UK Oil and Gas Authority, Vulcan North West will become Nailsworth, Vulcan East will become Elland and Vulcan South will become Southwark.  Nailsworth, Elland and Southwark will still collectively be known as the Vulcan Satellites.

Mark Routh, CEO and Interim Chairman of IOG commented:

"We are extremely pleased with the results of the CPR on our SNS development portfolio.  IOG now holds independently verified 2P gas Reserves of 303 BCF / 54 MMBoe with a 2P peak production rate of more than 200 MMcfd and a 2P NPV₁₀ valuation of £321 million.  This is a major landmark for our portfolio and clear vindication of our strategy of acquiring neglected and stranded assets at low cost, to be commercialised via our gas hub strategy using the Thames Pipeline export route.

In addition to confirming substantial volumes, the classification as reserves is a key step towards securing development funding.  Our submission of the Field Development Plan for the Vulcan Satellites hub, expected later this month, will be the next important step in that regard.  We also expect to confirm further key project contractors in the coming weeks.

In addition, we shortly expect to receive a further CPR on the Harvey structure which provides very material upside to our portfolio."

-ENDS-

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

Enquiries:

Glossary

Notes

About Independent Oil and Gas:

IOG owns substantial low risk, high value gas Reserves in the UK Southern North Sea.  The Company is targeting a 2P peak production rate in excess of 200 MMcfd (c. 35,000 Boe/d) from its substantial current portfolio via an efficient hub strategy.  Alongside this it continues to pursue value accretive acquisitions, to generate significant shareholder returns.  All of IOG's licences are owned 100% and operated by IOG.

About ERC Equipoise Limited:

ERCE is an independent consultancy specialising in geoscience evaluation and engineering and economics assessment.  Except for the provision of professional services on a time-based fee basis, ERCE has no commercial arrangement with any other person or company involved in the interests which are the subject of this report.

ERCE has the relevant and appropriate qualifications, experience and technical knowledge to appraise the assets professionally and independently.  ERCE considers that the scope of the CPR is appropriate and includes and discloses all information required to be included therein and was prepared to a standard expected in accordance with the AIM Rules.

Competent Person's Statement

In accordance with the AIM Note for Mining and Oil and Gas Companies, IOG discloses that Mark Routh, IOG's CEO is the qualified person that has reviewed the technical information contained in this document.  Mark Routh has an MSc in Petroleum Engineering and has been a member of the Society of Petroleum Engineers since 1985.  He has over 35 years' operating experience in the upstream oil and gas industry.  Mark Routh consents to the inclusion of the information in the form and context in which it appears.

Further information can be found on www.independentoilandgas.com