Independent Oil & Gas (LON:IOG) has agreed an additional loan, of £800,000, from London Oil & Gas which is one of the two parties to fund the Skipper appraisal well.
London Oil & Gas last week agreed to lend the company £2.75mln of a total £4.75mln debt financing.
The additional £800,000 will be invested in the IOG’s gas assets in the Southern North Sea, as well as providing additional contingency for the Skipper programme and support working capital. It is on the same terms as last week’s loan agreement, i.e. interest of 9% per annum and repayable by December 30.
"We are pleased to have agreed this additional loan from London Oil & Gas,” said chief executive Mark Routh.
“It will enable us to further de-risk and add value to IOG's Southern North Sea asset portfolio.
“It will also fund corporate needs for 2016 and provide an extra layer of contingency for the fully funded Skipper appraisal well."
The company also revealed that certain members of the management team have elected to sacrifice some or all their salary, and instead receive shares. For reference, in the six months to August 31, the amount being sacrificed would amount to £173,697.