14th Jul 2016 08:59
LONDON (Alliance News) - Independent Oil & Gas PLC on Thursday said the Skipper appraisal well in the UK North Sea will be drilled later this month, following numerous delays, as the company issued shares to settle fees owed to two contractors
The well originally was supposed to be drilled last year but was pushed back in 2016, and further delays meant the company had to extend the Skipper licence earlier this year to ensure it had enough time to drill the well.
Independent Oil recently said the well would be drilled in "late" July rather than earlier in the month as previously planned, and on Thursday said the well will be drilled by US-giant Transocean on July 22.
The well will take 22 days to drill following a previous reduction in drilling time from the original 25-day forecast. Results therefore are expected in the middle of August.
Independent Oil said it has settled the outstanding advance payment owed to Transocean for drilling the well by issuing 6.4 million shares priced at 15.375 pence each. The company made the first advance payment in June by issuing 2.7 million shares at 18.375p.
The first lot of shares settled USD1.7 million of the balance owed to Transocean and the second tranche issued Thursday will settle the remaining USD1.7 million.
It also issued 75,000 shares to another, unnamed contractor after that contractor exercised options it had been awarded at 1.0p.
Independent Oil shares were up 1.9% to 15.67p per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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