REG - IOG PLC - Bondholder discussions

IogAnnouncement

31/07/2023 10:00

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RNS Number : 7320H  IOG PLC  31 July 2023

31 July 2023

 

IOG plc

 

Bondholder discussions

 

IOG plc ("IOG", or "the Company"), (AIM: IOG.L) provides a further progress
update on discussions with bondholders and on production operations.

 

The existing waiver confirmed on 22 June 2023 postponed the interest payment
due on 20 June 2023 under the €100 million senior secured bond ("Bond") to
31 July 2023, together with certain other amendments. Since then, the Company
has held extensive discussions with bondholders and their advisors and is now
at an advanced stage of agreeing a further waiver in order to provide an
additional period of stability to address balance sheet challenges. The
Company expects that this waiver will be signed as soon as practicable.

 

In the event that the Company does not obtain a further waiver from
bondholders, an event of default under the Bond Terms may result, which could
potentially lead to the Company being put into administration. The Directors
do not believe that this is a likely outcome and anticipate that the waiver
will provide the Company with a further period of stability. In addition, no
plan has yet been agreed around a longer-term solution, on which a number of
potential options will continue to be discussed with bondholders.

 

Operations

·   Blythe H2 gas rate has seen natural decline to approximately 26
mmscf/d currently, with over 95% operating efficiency in July and no
associated water production

·    No change to Blythe remaining reserves estimates (FY2022: gross 1P /
2P / 3P 24.6 / 42.3 / 46.8 billion cubic feet equivalent)

·     The Perenco Bacton terminal annual maintenance shutdown is scheduled
for early August and expected to last approximately one week, which will
curtail average production in that month

·   Gas prices have remained relatively weak over the summer, with
realised prices averaging in the 70-75p/therm range in July; market volatility
remains high.

 

Rupert Newall, CEO, commented:

 

"We are now at an advanced stage of agreeing a further waiver, which we expect
will be signed as soon as practicable. We continue to have constructive
discussions with bondholders and remain focused on delivering an outcome in
the best interests of all stakeholders in IOG. We will keep the market advised
on further progress at the appropriate times."

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the company's obligations under Article 17 of
MAR.

 

Enquiries:

 

 IOG plc                                            info@iog.co.uk (mailto:info@iog.co.uk)

 Rupert Newall (CEO)

 James Chance (Head of Capital Markets & ESG)

 Vigo Consulting                                    iog@vigoconsulting.com (mailto:iog@vigoconsulting.com)

 Patrick d'Ancona / Finlay Thomson

 finnCap Ltd

 Christopher Raggett / Simon Hicks

 Peel Hunt LLP

 Richard Crichton / David McKeown

About IOG:

 

IOG is a UK developer and producer of indigenous offshore gas. The Company
began producing gas in March 2022 via its offshore and onshore Saturn Banks
production infrastructure. In addition to its production assets, IOG operates
several UK Southern North Sea licences containing gas discoveries and
prospects which, subject to future investment decisions, may be commercialised
through the Saturn Banks infrastructure. All its assets are co-owned 50:50
with its joint venture partner CalEnergy Resources (UK) Limited. Further
details of its portfolio can be found at www.iog.co.uk (http://www.iog.co.uk)
.

 

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