Bond settlement and Harvey drilling

RNS Number : 2019N

Independent Oil & Gas PLC

23 September 2019

 

23 September 2019

Independent Oil & Gas plc

Bond settlement and Harvey drilling

Independent Oil and Gas plc ("IOG" or the "Company"), the development and production company focused on becoming a substantial UK gas producer, is pleased to confirm that settlement of its EUR100 million 5-year senior secured bond ("Bond") took place on 20 September. Details of the key Bond terms were announced on 9 September.

In addition, the Company can also confirm that the Maersk Resilient jack-up rig went off contract in the early hours of the morning on 19 September. The Harvey appraisal well was drilled in  under two months with no HSE or Lost Time Incidents and confirmed a 49ft gas column. Data acquired from the well is now undergoing analysis to generate a revised technical assessment of reservoir gas volumes and deliverability, meeting the primary objectives of the well.

The Company's Interim Statement for the first half of 2019 will be released on Thursday 26 September.

Andrew Hockey, CEO of IOG, commented:

"We are pleased to have completed the settlement process for our EUR100 million bond raise, which with the proceeds to come from our farm-out to CalEnergy Resources Ltd will ensure we are fully funded for our Core Project. We are also delighted to have completed the drilling of the Harvey appraisal well safely and without incident and look forward to sharing the results of the well analysis in due course."

Enquiries:

Independent Oil and Gas plc                                                    [phone]

Andrew Hockey (CEO)

James Chance (CFO)

Rupert Newall (Head of Corporate Finance)

finnCap Ltd                                                                                [phone]

Christopher Raggett, Simon Hicks (Corporate Finance)

Camille Gochez (Corporate Broking)

Peel Hunt LLP                                                                           [phone]

Richard Crichton

David McKeown

Vigo Communications                                                             [phone]

Patrick d'Ancona

Chris McMahon

Simon Woods

About Independent Oil and Gas:

Subject to completion of the farm-out transaction announced on 26 July 2019, IOG will own and operate a 50% stake in substantial low risk, high value gas reserves in the UK Southern North Sea. The Company's Core Project targets a gross 2P peak production rate of 146 MMCF/d (c. 25,000 Boe/d) from gross 2P gas Reserves of 302 BCF¹ + 2C gas Contingent Resources of 108 BCF², via an efficient hub strategy. In addition to the independently verified 2P reserves at Blythe, Elgood, Southwark, Nailsworth and Elland and 2C Contingent Resources at Goddard, IOG also has independently verified best estimate gross unrisked prospective gas resources of 73 BCF² at Goddard and is in the process of updating its management estimate of gas resources at Harvey. Alongside this IOG continues to pursue value accretive acquisitions to generate significant shareholder returns.

Competent Person's Statement

In accordance with the AIM Note for Mining and Oil and Gas Companies, IOG discloses that Andrew Hockey, IOG's CEO, is the qualified person that has reviewed the technical information contained in this document.  Andrew Hockey has an MSc in Petroleum Geology and has been a member of the Petroleum Exploration Society of Great Britain since 1983.  He has over 35 years' operating experience in the upstream oil and gas industry.  Andrew Hockey consents to the inclusion of the information in the form and context in which it appears.

¹ERC Equipoise Competent Persons Report: October 2017, adjusted by Management to account for updated project timing and compression

²ERC Equipoise Goddard Competent Persons Report: October 2018

 

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