Independent Oil and Gas PLC (LON:IOG) has confirmed it is not making an offer for Deltic Energy PLC (LON:DELT) but said it believes a transaction “at the right level” would have considerable logic.
IOG made its interest in Deltic known in early September and other UK-focused oil and gas companies have also recently indicated interest in the AIM-quoted firm which has an exploration partnership with Shell, a wider North Sea project portfolio and a healthy c£12mln cash balance.
Deltic previously batted away a takeover approach from Reabold Resources and in doing so was backed by its major shareholders.
READ: Deltic Energy boasts strong balance sheet
In Monday's statement, which was required due to the market’s takeover code, IOG said its respective asset portfolios are complementary but it won’t pursue an offer at this time.
It said that “the board of IOG is clear that it will remain disciplined in its approach to consolidation opportunities and will not pay over risked fair value for assets, not least given the quality of its own existing portfolio and near-term development opportunities.”
“IOG remains as firmly focused as ever on safe and efficient execution of its Phase 1 development, which continues to progress on track for first gas in Q3 2021, as well as generating substantial additional shareholder value from the extensive growth opportunities within its existing Southern North Sea gas portfolio, including several further proven gas discoveries, multiple nearby potential incremental investment assets and two further synergistic gas discoveries in the recently released 32nd Round licence offers.”
