IOG: Corporate and Funding Update
Wednesday 21 February 2018
Independent Oil and Gas plc, the development and production focused Oil and Gas Company, provided the following financial, operational and Board update.
£10 million convertible loan facility (the “New Facility”) successfully signed with existing lender London Oil and Gas Limited (“LOG”).
- Subject to shareholder approval, convertible into ordinary shares of 1p in the Company ("Ordinary Shares") at a conversion price of 19p (the "Conversion Price"), a 15% premium to the closing price of the Ordinary Shares on 20 February 2018.
- Loans drawn down under the New Facility will carry a coupon of LIBOR+9%.
- The New Facility is secured against all of the current and future assets of the Company and of the Company's subsidiaries IOG North Sea Limited ("IOG NS") and IOG UK Limited ("IOG UK"), and is repayable 36 months after the drawdown of each tranche.
IOG is now fully funded to Final Investment Decision (“FID”) on its 100% owned UK Southern North Sea (“SNS”) dual gas hub development project (Blythe and Vulcan Satellites), expected in August 2018.
- Blythe and Vulcan Satellite gas hubs consist of five fields with independently verified 2P reserves of 303 BCF (54 MMBOE).
- IOG remains on track for first gas in Q4 2019.
Proceeds of the New Facility are to be used to fund: -
- Ongoing site survey programme for the Thames Pipeline and other project pipeline routes, as well as all future platform locations.
- Intelligent pigging operation to confirm the integrity of the decommissioned Thames pipeline, scheduled for late March.
- Platform and pipeline Front-End Engineering & Design (“FEED”).
- Thames gas reception facility refurbishment and FEED work at the Bacton terminal.
Alongside this, initial planning work is underway for the drilling of the Harvey appraisal well.
Andrew Hockey to succeed Mark Routh as CEO. Mark Routh to be appointed Non-Executive Chairman.
The issue of Ordinary Shares pursuant to the New Facility is subject to shareholder approval. A General Meeting is to be convened for 13 March 2018.