REG - IOG PLC - Financial Update

IogAnnouncement

20/10/2022 12:45

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RNS Number : 5805D  IOG PLC  20 October 2022

20 October 2022

 

IOG plc

 

Financial update

 

IOG plc ("IOG", or "the Company"), (AIM: IOG.L), the Net Zero UK gas and
infrastructure operator focused on high return projects, provides a financial
update.

 

Following the scheduled monthly receipt of payments for gas sales, IOG's cash
position is today in excess of £36 million, of which £5 million is
restricted. The Company's internal modelling projects corporate cash flows in
a range of risked scenarios, including lower production outturn versus
forecast, longer than planned downtime and gas prices materially below the
prevailing forward curve. In the current outlook based on these scenarios, no
short-term incremental funding need is anticipated.

 

Rupert Newall, CEO of IOG, commented:

 

"Following yesterday's update, and with 2022 capex guidance unchanged, it is
important to reassure our shareholders that IOG has sufficient liquidity to
work through current operational challenges and that the changes announced
this morning do not imply any upcoming capital raising plans.

The new IOG management team is working constructively to take ownership of
these challenges and rebuild shareholder value. Our near-term priorities are
to restore Saturn Banks production as early as possible after the Bacton
terminal shutdown, bring Southwark onstream in a safe and timely fashion, and
advance our plans to optimise Blythe production. We also look forward to
progressing our exciting portfolio of appraisal and development opportunities.
I look forward to keeping investors updated."

 

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                                            +44 (0) 20 7036 1400

 Rupert Newall (CEO)

 James Chance (Head of Capital Markets & ESG)

 finnCap Ltd                                        +44 (0) 20 7220 0500

 Christopher Raggett / Simon Hicks

 Peel Hunt LLP                                      +44 (0) 20 7418 8900

 Richard Crichton / David McKeown

 Vigo Consulting                                    +44 (0) 20 7390 0230

 Patrick d'Ancona / Finlay Thomson

About IOG:

 

IOG is a Net Zero UK gas and infrastructure operator focused on high-return
projects. The Company's operations are currently concentrated around its
offshore and onshore Saturn Banks infrastructure in the UK Southern North Sea.
Phase 1 of its Saturn Banks Project, which started production in March 2022,
entails the commercialisation of the Blythe, Elgood and Southwark gas fields
through this infrastructure. Phase 2 of the Saturn Banks Project entails the
Nailsworth, Goddard and Elland gas discoveries, which are subject to future
investment decisions and expected to be commercialised through the same export
infrastructure. The Company also holds further licences with additional
resources including the Abbeydale, Panther and Grafton gas discoveries, the
Kelham North, Kelham Central, Thornbridge and Thornbridge Deep prospects, and
part of the Orrell gas discovery. Currently, all IOG's licences are held 50:50
with its joint venture partner CalEnergy Resources (UK) Limited and operated
by IOG. In addition, the Company continually evaluates further opportunities
for accretive portfolio additions to help generate additional shareholder
returns. Further details are available at www.iog.co.uk (http://www.iog.co.uk)
.

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