Independent Oil & Gas (LON:IOG)#
Independent Oil & Gas (IOG)# has provided a strategic update having satisfied all of the conditions relating to the £13.55m financing transactions with London Oil & Gas. This funding has therefore become available immediately.
IOG will use this funding to pursue an acquisition strategy to focus on near term oil and gas developments and low risk production assets in the North Sea to complement its existing assets. IOG will also consider other opportunities in stable Western geographies outside of the North Sea.
In addition IOG will be able to benefit from any share sales by AGR Well Management relating to the c9.9m shares issued to it on 11 February 2016, as the excess of any shares sold above an average price of 9.675p will be shared equally with IOG.
Considering the macroeconomic environment we are very impressed by IOG’s ability to secure this funding at a time when capital markets have been effectively shut to small oil and gas companies. This funding from London Oil & Gas represents significant financial support to IOG which provides access to finance to pursue a number of low risk, value accretive opportunities created by current market conditions.
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