30 Sep 2016
Interim Results 2016Independent Oil and Gas plc (“IOG” or the “Company”) (AIM: IOG.L), the North Sea focused Oil and Gas Company, announces its interim results for the six-month period ended 30 June 2016.
Highlights for the period to 30 June:
- £10 million secured convertible loan signed with London Oil and Gas Limited (“LOG”), part of the London Group plc, to finance asset acquisitions as well as G&A expenses up to 2018.
- This loan is in addition to the £2.75 million and £0.8 million loans also provided by LOG.
- £2.0 million loan also secured from GE Oil & Gas Ltd to part fund the Skipper appraisal well.
- Martin Ruscoe was appointed to the board of IOG as LOG’s representative.
- Skipper licence extended until 31 December 2016 and appraisal well rescheduled from early 2016 in order to drill in more favourable economic and climatic conditions.
- The well was drilled successfully in July-August 2016.
- Sale and Purchase Agreement (“SPA”) signed and completed to acquire from Alpha Petroleum Resources Limited the other 50% of the Blythe gas discovery in Blocks 48/22b and 48/23a in the UK Southern North Sea, giving the Company 100% ownership of this key asset and operatorship of the licence.
- Blythe needs no further appraisal and this transaction doubled IOG’s independently verified 2P reserves by 17.2 billion cubic feet (“BCF”) to 34.3 BCF or 6.1 million barrels of oil equivalent (“MMBoe”).
- SPA signed to acquire 100% of the shares of Oyster Petroleum Limited, a subsidiary of Verus Petroleum, including 100% of Block 49/21a (Licence P039), Block 49/21d (Licence P2122), Block 48/25b (Licence P130) and Block 49/21/c (Licence P1915), which collectively hold three discovered fields known as the Vulcan Satellites.
- The Vulcan Satellites hold 2C recoverable resources of 320.7 BCF or 53.45 MMBoe.
- Loss after tax of £1.06 million (1H 2015 – £0.20 million), cash used in operations £0.44 million (1H 2015 - £0.28 million).
- Cash resources as at 30 June 2016 of £0.11 million (31 December 2015 - £0.03 million) plus undrawn loans of £13.18 million (2015 - £nil). The Company continues to use its cash resources judiciously.
- The Skipper appraisal well in Block 9/21a in the Northern North Sea was drilled over July-August 2016. The primary objective of securing reservoir quality oil samples was successfully achieved.
- Board strengthened through the appointment of David Peattie as Independent Non-Executive Chairman and Andrew Hay as a Senior Independent Non-Executive Director.
- Doug Fenwick appointed to a non-board role as Technical Director.
The interim results can be viewed here.
IOG has made great strides during the first half of the year, continuing to deliver shareholder value as we pursue our hub focussed strategy to create a successful mid-cap development and production company. IOG is now funded until up until 2018, with an excellent portfolio of wholly owned assets, strengthened Board, management and technical team and the flexibility and creativity to succeed in this challenging market environment.
We have an incredibly busy work programme planned over the next 12 months as we focus our efforts on the planning of our three different North Sea projects and it promises to be a very exciting time for the Company.
We would like to thank our shareholders for their continued support and look forward to providing further news flow over the remainder of the year.