3rd Jun 2015 10:48
LONDON (Alliance News) - Independent Oil and Gas PLC Wednesday said it is set to acquire the 50% stake in a North Sea license that contains the Skipper discovery that it does not already own after signing a sale and purchase agreement with Alpha Petroleum Resources Ltd.
Upon completion of the deal, Independent Oil will become the operator of license P1609 and the license will add a further 13.1 million barrels of oil to the company's verified 2C resources.
The acquisition is subject to confirmation of funding and regulatory approvals from the UK government's Department of Energy and Climate Change regarding the company operating the license.
The initial work programme on the license will involve drilling a well in mid-2016, but that will require the company to get a license extension as the current one expires on September 30. Independent Oil is in "advanced discussions" with a company about a rig contract for the initial well and anticipated subsequent development wells on the Skipper discovery.
"Independent Oil continues to make good progress with regard to securing longer term funding to appraise and develop its assets through to production, which would include 100% of Skipper. A Letter of Intent has been signed with an internationally listed group with a multi-billion dollar market capitalisation relating to the funding which is anticipated to complete by mid-August," said the company.
The company did warn that the funding is subject to negotiation and the "approval of various counter-parties" and said there is no guarantee it will be secured.
""We have been working hard to secure full ownership of this highly attractive licence and to secure the necessary funding. We are delighted to be making positive progress on both fronts and look forward to updating shareholders on our financing in the near future," said Mark Routh, chief executive of the company.
Independent Oil shares were up 4.8% to 9.30 pence per share Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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