8th Jul 2015 07:12
LONDON (Alliance News) - Independent Oil & Gas PLC on Wednesday said it is moving closer to securing financing to bring its North Sea assets into production.
The company said it is now close to securing a long-term financing deal which will be split between equity and debt funding. The unnamed potential funder of the company, which Independent described as "an internationally listed group with a multi-billion dollar market capitalisation", is expected to subscribe for 30 million shares in the company at 23.79 pence per share, raising approximately GBP7.1 million for the company. The funder would take a 29.9% equity stake in the company as part of the agreement.
The debt facility portion of the financing is set to be completed around two months after the equity financing, which Independent expects to close by the end of July. The first tranche of the debt funding would be sufficient to back drilling at the Skipper and Cronx wells and potentially another well at its Elgood, Truman, Harvey or Hambleton prospects.
Independent Oil & Gas also said it is in talks to sign a contract for a semi-submersible drilling rig to drill the Skipper well, which it expects to be done by mid-2016.
The news of the potentially imminent funding deal, which Independent hopes to complete in the next fortnight, sent its shares higher in early trade, up 13% to 17.00 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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