viewIndependent Oil & Gas PLC

IOG plummets as North Sea project financing is delayed

"Unstable" equity markets are a challenge to IOG's funding plans

oil and gas operations
A final investment decision is now expected in the first quarter

Independent Oil and Gas Plc (LON:IOG) shares dropped around 20% in Thursday’s early deals as the North Sea firm cautioned that current oil price volatility and capital market conditions aren’t conducive to deliver its financing plan for the core Southern North Sea project before year-end.

The company, in a statement, told investors that its intention is to fund the project via a senior secured bond issue and an equity-based fundraise.

IOG added that advisors have been engaged to secure the required finance, and, it said that the investment case is compelling.

READ: Eco Atlantic Oil & Gas says Total deal confirms Orinduik’s “great value”

Nevertheless, the timeline has slipped into the New Year.

The company said it is technically ready to achieve ‘first gas’ within 20 months of making its final investment decision, and, it is “fully ready” to progress its funding plans early in 2019 as soon as markets stabilize.

The final investment decision is now anticipated in the first quarter of 2019.

“The company considers that the current equity and debt market conditions are not sufficiently stable for IOG to proceed to complete the funding process before the year-end,” said Andrew Hockey, IOG chief executive.

“Having considered carefully and taken due advice, the Board believes that it is in the best interests of shareholders to do so as early as possible in the New Year.

“In our view, this short delay to the existing timetable is likely to enable an optimal funding outcome and maximise the value for shareholders.”

On AIM, IOG shares fell 5.6p or 19.65% to 22.9p.

Quick facts: Independent Oil & Gas PLC

Price: 18.125 GBX

Market: AIM
Market Cap: £86.42 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...



Global Energy Metals in London discussing plans to develop cobalt projects...

Global Energy Metals Corporation (CVE:GEMC) (OTCMKTS:GBLEF) CEO Mitchell Smith caught up with Proactive's Andrew Scott while in London to update shareholders on progress within its portfolio of cobalt and battery metal projects. Smith says the firm's well-placed to take advantage of the...

14 hours, 16 minutes ago


PDMR Dealing / Issue of Equity

3 days, 9 hours ago


6 days, 16 hours ago


3 weeks ago


3 weeks, 1 day ago


3 weeks, 1 day ago


3 weeks, 2 days ago


3 weeks, 2 days ago

2 min read