Extension of Skipper Licence
Thursday 28 January 2016
Independent Oil and Gas plc, the North Sea focused oil and gas company, is pleased to announce that following discussions with the UK Oil & Gas Authority, the Skipper Licence P1609 Block 9/21a has been formally extended until 31 December 2016. As previously indicated, IOG intends to drill the appraisal well as soon as economic conditions allow.
Separately, the Company has today issued 444,989 new Ordinary Shares (the “New Ordinary Shares”) to VSA Capital and an independent third party consultant as payment for advisory services received. Such New Ordinary Shares were issued to VSA and the independent consultant at 8.73p and 8.38p per New Ordinary Share respectively being the Volume Weighted Average Price per Ordinary Share for the periods over which the services were provided.
The Company has applied to the London Stock Exchange for admission of the New Ordinary Shares to trading on AIM (“Admission”). Admission is expected to occur on 2 February 2016. Following Admission there will be 79,162,684 Ordinary Shares in issue. Accordingly, this number may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the FCA’s Disclosure and Transparency Rules.
Mark Routh CEO of IOG commented: In the context of this very severe oil price downturn, we are grateful for the OGA’s pragmatic and supportive stance in extending the Skipper licence which we anticipate will enable us to drill the appraisal well later in 2016. Constructive dialogue with the various contractors and funders are progressing well and we anticipate confirming that arrangements remain in place for a rapid resumption of the well drilling process once it makes economic sense to proceed.
Source: Independent Oil and Gas plc