Acquisition of Blythe Discovery
Tuesday 19 April 2016
Independent Oil and Gas plc ("IOG" or the "Company") (AIM: IOG.L), the development and production focused oil and gas company, is pleased to announce that its wholly owned subsidiary, IOG North Sea Limited, has signed a Sale and Purchase Agreement (“SPA”) to acquire from Alpha Petroleum Resources Limited (“Alpha”) the 50% of Blocks 48/22b and 48/23a in the Southern North Sea not already owned by the Company. These blocks contain the Blythe gas discovery.
On 18 April 2016 the Company signed an SPA to acquire the other 50% of the licence covering Blocks 48/22b and 48/23a in the Southern North Sea, containing the Blythe gas discovery, from Alpha for an initial consideration of £1.5 million payable at completion with deferred consideration of a further $5 million to be paid at first gas.
Blythe needs no further appraisal and this transaction will immediately double IOG’s independently verified 2P reserves by 17.2 BCF to 34.3 BCF or 6.1 million barrels of oil equivalent (“MMBoe”).
Upon completion of the acquisition and the approval from the Oil and Gas Authority (“OGA”), IOG will become Operator and will own 100% of the licence.
As announced on 28 August 2015, the licence was extended to 31 December 2016.