19th Mar 2019 11:28
LONDON (Alliance News) - Independent Oil & Gas PLC on Tuesday said the administration of a company related to its main backer will not affect IOG's future.
Shares were 2.7% higher on Tuesday at 19.52 pence each.
Administrators from Smith & Williamson LLP and CMB Partners UK Ltd have been appointed at London Oil & Gas Ltd.
London Oil & Gas is a main backer of IOG, and there is currently a GBP38.6 million loan facility from London Oil & Gas to IOG.
"The company is informed the announcement due to be made by the administrators states they understand 'the administration of London Oil & Gas will preserve the significant value of London Oil & Gas' key assets, being its financial interests in natural resources company, Independent Oil & Gas', and that, 'IOG is not adversely affected by the administration of London Oil & Gas' and that 'IOG continues to trade normally'," said IOG.
The loans between the two remain unchanged, and no default will be triggered by London Oil & Gas' administration.
IOG Chief Executive Andrew Hockey commented: "We are delighted to have the support of the administrators which will help us to proceed to final investment decision on our core project.
"The additional third-party validation is further proof of the considerable value of the IOG portfolio which we look forward to unlocking very soon."
IOG has a number of assets in the UK North Sea.
Related Shares:
IOG.L