Business Plan

First well to be drilled under Isle of Man jurisdiction – a milestone for the Island

• BP discovered the Crogga Gas Field in Block 112/25 in 1982, not developed at the time
• The 1982 electric logs run in the BP 112/25-1a well showed a 44 m gas column
• The Crogga Gas Field was transferred from UK to Isle of Man jurisdiction in 1991
• Crogga Limited was awarded an IOM licence in 2018 to produce gas from Block 112/25
• Crogga Limited plan to drill the Independence appraisal well in late 2023
• Success could provide energy independence for the Isle of Man by 2026
• Natural gas is the fuel to enable the transition to a zero-carbon future for the Isle of Man

Possible benefits for Crogga and the Isle of Man

• Crogga Limited will pay 100% of the costs, with no investment required from government.
• Based on achieving commercial flow from the Independence Well, field development will commence which will provide gas production for a period of 15 to 20 years.
• Domestic Isle of Man gas demand equates to 3% to 5% of total forecast field production. Crogga will supply domestic gas to the Isle of Man at a price capped at 80p per therm.
• The remaining 95% of gas production will be exported for sale to European, Irish and UK markets.
• If natural gas replaces either coal or oil power generation, then it is designated as a green fuel by the EU directive.
• Profits from gas sales are allocated between Crogga Limited and the Isle of Man Government.
• Benefits to the Isle of Man include:
  • Significant tax revenues to the Treasury which will dramatically improve the Isle of Man’s economy.
  • Energy independence for 15 to 20 years during which an energy transition to net-zero will develop.
  • Reduced carbon footprint due to local gas production which will avoid greenhouse gas emissions due to intercontinental transportation by pipeline and sea.
  • Capped domestic gas prices.
  • Creation of well-paid jobs in the Isle of Man.