26th Sep 2014 06:42
LONDON (Alliance News) - Independent Oil & Gas PLC said Friday that it has signed a Memorandum of Understanding with Ping Petroleum (Bermuda) Ltd to jointly evaluate and bid for producing assets in the UK Continental Shelf.
The North Sea-focused oil and gas company said in a statement that the agreement is in line a key element of its strategy of acquiring producing assets either as an operator or non-operator. The companies have shared aims with regards to acquiring such assets, said Independent Oil & Gas.
The companies have already evaluated several such properties and the MOU sets out the basis for ongoing collaboration. "IOG's team has great experience of maximising revenues from mature producing assets and Ping has complementary experience from the Gulf of Mexico and South East Asia," said the AIM-listed company.
IOG has plans to drill wells on both its Cronx and Skipper assets next summer, subject to funding. The costs of these wells would generate significant capital allowances that could be offset against production revenues from acquired assets, it said.
The company has already commenced work in conjunction with Ping to assess a number of potential acquisition opportunities. "Such acquisitions should significantly reduce the amount of additional funding required," said IOG.
One joint bid already made by IOG and Ping had backing by a large institution to debt fund IOG's share and if successful may not require any additional equity funding.
Ping Petroleum is a private independent exploration and production company based in SE Asia.
IOG said it will continue to update shareholders on developments with this strategy and plans to release an interim statement September 30, 2014.
By Alice Attwood; [email protected]; @AliceAtAlliance
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