Independent Oil & Gas (LON:IOG)#
Independent Oil & Gas (IOG LN) has announced that it has signed an LOI with Offshore Design Engineering for multiple contractor roles in the development of the Blythe and Vulcan Satellites project beginning with technical and operational support in preparation for the final investment decision.
ODE will provide technical and operational support both before and after the FID and will act as the operations and maintenance service provider. Pre-FID costs will be fully deferred while pre first gas costs will be 50% deferred until first gas. The Thames Pipeline will also be included in ODE’s remit along with an onshore operational base in Great Yarmouth.
The announcement demonstrates further support from external contractors underpinning confidence in the project. Furthermore, the terms of the LOI with significant deferrals reduce the upfront funding requirement strengthening IOG’s ability to advance the project as a 100% operator.
We reiterate our Buy recommendation.
Sula Iron & Gold (LON:SULA)#
Sula Iron & Gold (LON:SULA) has provided a corporate update. Structural interpretation work following the recent drilling programme and soil sampling is ongoing. The results of this analysis will aid in identifying the most appropriate next steps for development and management is of the opinion that finding a JV or farm in partner may be the most advantageous way of developing the Ferensola project.
The board have also indicated that it intends to expand SULA’s asset base and is considering opportunities in this regard.
We reiterate our Speculative Buy recommendation and 1.2p target price.
Goldplat (LON:GDP)#
We note the purchase of share’s by CEO, Gerard Kisbey Green.
We reiterate our Buy recommendation and target price of 17p.