REG - Independent Oil &Gas - Short Term Funding Update <Origin Href="QuoteRef">IOG.L</Origin>

IogAnnouncement

25/07/2015 09:30

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RNS Number : 4478T
Independent Oil & Gas PLC
20 July 2015 
 
20 July 2015 
 
Independent Oil and Gas plc 
 
Short Term Funding Update 
 
Independent Oil and Gas plc ("IOG" or the "Company"), (AIM: IOG.L), the North
Sea focused oil and gas company, provides an update on its short term
funding. 
 
The Company advised shareholders on 8th July 2015 that the delayed
subscription of 609,500 shares at a price of 23.79p was expected to be paid by
17 July 2015.  Once paid, IOG would be fully funded until 4 September 2015. 
 
Although IOG did not receive the funds on 17 July 2015. The Company has
received confirmation from the investor that it has the available funds and
that payment should now be received within the next few days.  The Company
will announce confirmation of the receipt of funds once they are received.  An
update on the long term funding position of IOG will also be made in due
course. 
 
-ENDS- 
 
Enquiries: 
 
 Independent Oil and Gas plcMark Routh (CEO)Peter Young (CFO)  +44 (0) 20 3051 9632  
 finnCap LtdMatt Goode/Christopher Raggett                     +44 (0) 20 7220 0500  
 (Corporate Finance)                                                                 
 CamarcoBilly Clegg / Georgia Mann                             +44 (0) 20 3757 4980  
 
 
Notes 
 
About Independent Oil and Gas: 
 
IOG is an oil and gas company with established assets focused on the UK North
Sea.  The company's strategy is to deliver near term development and
production assets in North West Europe, through its extensive technical and
commercial expertise, whilst maintaining some exposure to exploration upside. 
The company is looking to grow both organically and through acquisition. 
After the completion of the Skipper acquisition from Alpha Petroleum Resources
Ltd. ("Alpha") and the previously announced Cronx acquisition, the combined
estimate of 2P reserves and 2C resources net to IOG will be 38.6 million
barrels of oil equivalent ("MMBoe"). 
 
Post completion of the Cronx acquisition IOG will have five licences in the
North Sea.  Four of these licences will now be owned 100% by IOG and subject
to DECC/OGA approval will be operated by IOG.  The Blythe licence is co-owned
50% with Alpha which is the operator.  IOG has a 100% working interest in two
other licences, one awarded in the 27th licensing round and another in the
recent 28th licensing round.  One is to the east of Blythe containing the
Truman prospect and Harvey discovery and the other is between the Blythe and
Cronx licences which contains the Elgood and Hambleton discoveries and the
Tetley and Rebellion prospects.  Both these 100% owned licences have potential
resources that could be tied back to nearby infrastructure or to the Blythe
development. 
 
Further information can be found on www.independentoilandgas.com 
 
About Blythe: 
 
The Blythe gas discovery straddles Blocks 48/22b and 48/23a in the Southern
North Sea in licence P1736 which is 50% co-owned by IOG and Alpha (operator). 
Blythe needs no further appraisal and has independently verified gross 2P
reserves of 34.3 BCF (6.1 MMBoe) which is 17.2 BCF (3.0 MMBoe) net to IOG. 
(Source: ERC Equipoise Competent Person's Report ("CPR") dated September
2013.) 
 
The partnership is working towards submitting a Field Development Plan for
Blythe by September 2015. 
 
About Skipper: 
 
The Skipper oil discovery is in Block 9/21a in the Northern North Sea in
licence P1609.  Skipper needs further appraisal by drilling a well to retrieve
core and oil samples in order to design the optimum field development plan for
the field.  Subject to the completion of the previously announced acquisition
of Skipper from Alpha, IOG can now progress to the appraisal and development
stage of this asset.  Skipper has independently verified gross 2C resources of
26.2 MMBbls.  The appraisal well will also target two exploration prospects
directly beneath the Skipper oil discovery which may contain oil in place of
46 MMBbls.  (Source: AGR Tracs CPR dated September 2013.) 
 
About Cronx: 
 
IOG has agreed to acquire 100% of Cronx (Block 48/22a, licence P1737) which is
subject to completion.  The Cronx gas discovery is 14km north-west of the
Blythe field in which IOG owns 50%.  Cronx was discovered in 2007 by well
48/22b-6 drilled by Perenco UK Ltd. 
 
IOG commissioned an independent CPR by ERC Equipoise on Cronx in July 2012
which shows a base case expected gas recovery of 17.6 BCF or 3.4 MMBOE 2C
resource.  IOG anticipates drilling a well in 2016, subject to rig
availability, the necessary permits and funding.  IOG expects the well to
confirm the recoverable resources, which IOG believes has the potential to be
larger than the 17.6 BCF base case in the CPR.  IOG is currently evaluating
options for the development and export of the Cronx gas. 
 
About Elgood and Hambleton: 
 
The Elgood discovery (IOG 100%) (Block 48/22c, licence P2260) was drilled by
Enterprise Oil in 1991 and tested gas to surface at 17.6 MMcfd but was not
progressed by Enterprise due to size and gas prices at that time.  IOG's
estimate of the recoverable reserves in Elgood is 2.1 MMBoe. 
 
The Hambleton discovery, to the south of the same licence, was drilled by
Century Exploration in 2005 but also was not progressed to development.  IOG
estimates that Hambleton has recoverable resources of 6 BCF (1 MMBoe).  IOG
believes that the reprocessing of existing 3D seismic data could increase
recoverable resources up to 26 BCF. 
 
There are prospective resources on licence P2260 of 5.3 MMBoe in the Tetley
and Rebellion prospects.  Reprocessing of existing 3D seismic across 48/22a
and 48/22c is required to determine whether Elgood connects to Cronx which
would boost recoverable reserves significantly.  The new seismic
interpretation will also determine the likely size of Hambleton.  IOG is now
working on the potential development plans and will commission a CPR‎ to
confirm the resources over this area. 
 
This information is provided by RNS
The company news service from the London Stock Exchange