IOG PLC (AIM:IOG) shares skyrocketed 30% on Monday morning after the AIM-listed gas firm laid out plans to maximise cash flow by cancelling North Sea drilling and producing solely from its Blythe hydrogen well.
A contract for the Shelf Drilling Perseverance rig has been cancelled and plans to drill appraisals also side-lined at its Kelham and Goddard prospects in a bid to “maximise production and rebuild cash balances”.
IOG will solely produce from the Blythe H2 well meanwhile, which has proven to flow at a rate of 42mln standard cubic feet per day, above an anticipated rate of 30mln to 40mln, after coming online this month.
“Mindful of current gas market and balance sheet risks […] we have been assessing next steps for the business very carefully,” IOG said in a statement on Monday.
Shares climbed 29% to 5.4p.