30th Apr 2014 09:59
LONDON (Alliance News) - Independent Oil & Gas PLC said Wednesday it intends to complete the acquisition of the P1737 Cronx licence as soon as possible.
The North Sea-focused oil and gas firm had intended to complete the acquisition by April 30, 2014, but said it is now aware that a licence extension to the end of December 2014 is in place.
The firm reiterated that it intends to complete the deal as soon as possible, in order to "procure a suitable drilling rig for the commitment well and to put in place the necessary permits for drilling the well before the end of 2014."
Independent Oil & Gas announced the proposed acquisition in March. The firm is set to buy the UK licence block 48/22a in the North Sea, which contains a gas discovery that will be renamed Cronx, from Swift Exploration for an initial payment of about GBP468,000.
The discovery, which was made in 2007, is 14 kilometres north-west of the Blythe field in which Independent Oil & Gas holds a 50% stake. As long as the Blythe co-owner, Alpha Petroleum Resources Ltd, agrees, Independent Oil & Gas intends to export the gas from Cronx through the Blythe hub.
Days after the announcement, the company received approval to get a USD50 million reserve-based debt facility from a "substantial" US lender in order to develop the Blythe field in the North Sea. Independent Oil & Gas said Wednesday that this facility is still at the documentation stage.
Shares in the company were trading 4.73% lower at 30.01 pence per share Wednesday morning.
By Alice Attwood; [email protected]; @AliceAtAlliance
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