REG - IOG PLC - Update on bond discussions

IogAnnouncement

16/06/2023 11:15

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RNS Number : 0234D  IOG PLC  16 June 2023

16 June 2023

 

IOG plc

 

Update on bond discussions

 

IOG plc ("IOG", or "the Company"), (AIM: IOG.L) provides an update on its
discussions with a group of investors ("the ad-hoc group") in its €100
million senior secured bond ("the Bond")

 

As disclosed on 7 June, recognising the increased pressure on the Company from
operational and market developments over recent months, management has been
proactively taking mitigating actions to protect the Company's balance sheet
and initiated discussions with the ad-hoc group designed to pre-emptively
address potential near-term covenant breaches and the longer-term bond
maturity. Since that date, the bondholder group has grown to encompass more
than 50% of the Bond.

 

A primary objective for the Company is to ensure a period of stability to
continue to work in the best interests of its stakeholders. In that context,
the company remains in constructive dialogue with the ad-hoc group, including
regarding a potential deferral of the interest payment due 20(th) June for a
short period of time. Since the record date for the coupon payment is 16(th)
June (today), the Issuer has asked the Paying Agent to postpone the interest
payment date in the central securities depository (CSD) for technical reasons.
This postponement does not constitute a change in the due date but is made
contingent on approval by a requisite majority of the bondholders in a formal
bondholder resolution. The money will remain in the Debt Service Reserve
Account and a further announcement on this is expected shortly.

 

Rupert Newall, CEO, commented:

 

"We appreciate the constructive dialogue held to date with key bondholders and
believe that our mutual interests are well aligned to work through current
challenges. We will continue to engage proactively with them to unlock the
significant value in our portfolio for the benefit of all stakeholders.

 

In parallel, we have been producing steadily from the Blythe H2 well at around
20 mmscf/d since Monday and after an initial period of water being swept from
the pipeline due to the increased flowrate we are now seeing much smaller
quantities of water arriving at Bacton. We are in advanced preparations for
the upcoming wireline intervention which will allow us to investigate and
potentially remediate the apparent downhole restriction. While the gas market
remains extremely volatile, we are also encouraged by its substantial recovery
in the past two weeks."

 

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 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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