Independent Oil and Gas Plc (LON:IOG) has announced the completion of its deal to take full control of the Blythe gas project, in the Southern North Sea.
It has now acquired the 50% of Blythe that it didn’t already own, paying £1.5mln initially with a further US$5mln due when the field achieves ‘first gas’.
Blythe requires no further appraisal work and by acquiring the stake IOG’s reserve base has increased by 17.2bn cubic feet of gas or 3mln barrels oil equivalent.
DEAL: IOG to acquire Vulcan Satellites gas assets
MORE: IOG brings drilling of Skipper well forward to July
WATCH: There's still life in the North Sea says IOG chief
Following the recently agreed acquisition of the Vulcan Satellite gas assets, located near Blythe, today’s closing is particular timely for IOG and its ‘hub’ development plans.
"We are delighted to have completed the acquisition of the Blythe gas discovery which immediately doubles our independently verified 2P reserves and gives the company 100% ownership and control of the Blythe hub assets in addition to the recently announced pending acquisition of the nearby Vulcan satellites hub.
“We are making good progress with the Field Development Plan for Blythe and an update will be made in due course."
As well as the cash acquisition, the company is also now set to issue new shares in lieu of payment to a creditor, with 181,818 shares being issued at 16.5p each.