Independent Oil & Gas (IOG)# has completed the acquisition of the other 50% of the licence blocks containing the Blythe gas field. IOG is now, therefore, the 100% owner and operator of Blythe.
As per previous announcements IOG will pay £1.5m on completion of the deal with a further US$5m to be paid at first gas. This transaction immediately adds 17.2BCF (c3mmboe) to IOG’s 2P reserves.
This transaction has completed swiftly as per our expectations whilst IOG has also announced the pending acquisition of a second Southern North Sea hub of the nearby Vulcan satellites. IOG’s immediate focus now turns to the drilling of the Skipper appraisal well in early July 2016. We maintain our BUY recommendation and our TP is under review as we await further information on the Vulcan satellites.