Independent O&G: Interim results
Independent Oil and Gas plc (“IOG” or the “Company”) (AIM: IOG.L), the development and production focused Oil and Gas Company, is pleased to present its unaudited interim results for the six months ended 30 June 2017.
Highlights
- Strong operational progress delivering the Company’s gas hub strategy
- Acquisition of the Thames pipeline, subject to completion, for nominal consideration;
- Creates a fully-owned export route for the Company’s Southern North Sea (“SNS”) gas hub;
- Saves up to £100m of capital costs related to the development of the project;
- Extensive subsurface work programme completed, delivering a proprietary assessment of the Company’s gas development resource base, and the Harvey gas appraisal asset;
- Blythe and Elgood Field Development Plan submitted to the OGA, post-period end;
- Licence P2342, Block 48/25a (NW Vulcan) awarded in Supplementary 2016 29th Licensing Round, post-period end;
- Letter of Intent (“LOI”) and Consultancy Master Services Agreement (“CMSA”) signed with Schlumberger in relation to the Company’s SNS gas hubs, providing a framework for Schlumberger to assist IOG in the period prior to Final Investment Decision (FID) on the SNS development project, post period end;
- Board and operational teams strengthened;
- Andrew Hockey appointed as Deputy CEO;
- The Rt. Honourable Charles Hendry appointed as Non-Executive Director and representative of London Oil & Gas Limited (“LOG”);
- Post-period end, James Chance promoted to Chief Financial Officer and Ian Pollard, HS & E Manager and Jonathan Walker, Engineering Manager, joined the operational team;
- Advanced funding and commercial discussions with key partners for the development of the SNS gas hub continue;
- Ongoing support from LOG provides a stable financial base;
- North Sea production acquisition opportunities continue to be evaluated;
- Negotiations ongoing with Skipper Well creditors for management of liabilities due December 2017;
- CPR commissioned over the entire SNS project assets to be published in second half of 2017.
Mark Routh, CEO & Interim Executive Chairman of IOG, said: “We made excellent progress in the first half of this year as we focus our efforts on realising the potential of our Southern North Sea gas hubs. The acquisition of the Thames pipeline truly transforms the viability of this project as it can provide a stable export route for our gas straight to the currently undersupplied UK market. We are delighted with the progress we are making with industry partners on funding this project into production and look forward to making further updates in due course.”