30 Sep 2014
Independent Oil and Gas plc – Interim Results 2014London, 30 September 2014 - Independent Oil and Gas Plc, the AIM listed UK oil and gas development and production company, announces its interim results for the six month period ended 30 June 2014.
Highlights for the period to 30 June:
- Blythe East exploration area licence awarded on 12 February 2014
- Three licence applications made in UK 28th licensing round, with discovered resources of approximately 45 MMBOE. Awards expected to be announced in Q4 2014
- Acquisition of Cronx licence to the east of Blythe agreed with completion, subject to financing, expected in Q4 2014 resulting in IOG becoming 100% owner and operator
- Investment in systems and processes to meet DECC requirements to be exploration operator
- Sale of the operating company and 50% co-owner of the Blythe and Skipper fields completed. IOG now has a fully funded partner in Alpha Petroleum Resources Limited in those assets
- Equity and loan facilities arranged with Darwin Strategic Limited
- finnCap appointed as nominated adviser and broker
- Loss after tax of £1.47 million (1H 2013 – £0.23 million), cash used in operations £0.64 million (1H 2013 - £0.04 million)
- MOU signed with AGR Well Management Ltd to deliver the Cronx well in summer 2015
- Discussions with nearby infrastructure owners to Cronx commenced, with the aim of accelerating first gas to late 2016
- MOU signed with Ping Petroleum to bid jointly for producing assets in the UKCS
- Several potential production asset acquisitions already under evaluation
- Termsheet agreed with BP Gas Marketing Ltd for a secured bridging loan of £3m to be used to part fund the Cronx licence commitment well
We have made considerable progress in the first half of 2014 increasing our asset base, with the pending acquisition of Cronx and the award of the Blythe East Area Licence. In addition, the uncertainty around the ownership of our partner in Blythe and Skipper has been lifted with Alpha Petroleum being fully funded.
We can look forward to a number of value driving events in the months ahead which will increase our reserve base and move our projects closer to production.
Post period end, we consider the loan anticipated by the term sheet with BP Gas Marketing Ltd to be a validation of the IOG team and its portfolio of assets including the pending acquisition of the Cronx asset and the loan would be used to part fund the drilling of the Cronx commitment well next year.