8th May 2015 14:14
LONDON (Alliance News) - The board of Independent Oil and Gas PLC said that it is not aware of any reason for the jump in its share price, as the stock was trading up 38% at 10.00 pence Friday afternoon.
The company warned that it has limited cash resources, and will need to get funding or get an extension to allow the repayment of its loan to Darwin Strategic on or before June 4, and has limited funds to meet its ongoing expenses thereafter. The loan and fees due are GBP546,550, it said.
It is currently in talks to secure financing, and said that the first tranche of funding would allow it to drill wells on its Skipper, Cronx and Elgood assets in the North Sea, and the second tranche may be sufficient to get the assets into production, depending on the results of the initial wells.
This funding would most likely be in debt at competitive rates, Independent Oil and Gas said. The board anticipates any equity component would be priced above its current share price.
If it is unable to secure funding, and it is unable to reach a deal on the loan with Darwn Strategic, it will be unable to meet its liabilities, it said.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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