IOG PLC (AIM:IOG) is hitting the reset button after Wednesday’s disastrous North Sea project which halved the firm’s market value.
Sweeping management changes announced this morning include the departure of chief executive Andrew Hockey and chief operating officer David Gibson.
Chief financial officer Rupert Newall will take up the chief executive position and John Arthur has been named as IOG’s new chief – the former Aminex CFO has been IOG’s head of finance since joining in early 2022.
Dougie Scott, meanwhile joins IOG as the company's new COO. IOG highlighted that he was most recently at INEOS where over a seven year period held roles including CEO, operations director and well delivery and decommissioning director.
It comes after IOG yesterday revealed problems across its portfolio of gas assets in the North Sea which resulted in downgrades to production guidance, reserves and stoked fears over the group’s liquidity position.
IOG shares fell more than 50% in Wednesday’s dealing, though changing hands at 7.92p (down 1% for the session) had stabilised somewhat in Thursday morning’s deals.
“Yesterday’s headline was of lower reserves, lower production, higher costs and drilling delays; it appears the investor base subsequently lost faith in the management team and its ability to manage expectations and operations,” SP Angel analyst David Mirzai said in a note.
“We wish the new team well in finding long-term solutions to optimise reservoir management and resolve its drilling issues.”
In the statement today IOG chair Fiona MacAulay said: As IOG navigates a challenging initial phase of production and works up further development phases, this is an appropriate time to give the executive team fresh impetus. I am delighted to announce the appointments of Rupert Newall as CEO and Dougie Scott as COO.
“Given their respective track records, I firmly believe that we have an exceptionally strong management team with the right skills and experience to overcome operational hurdles and grow IOG into a leading UK gas production business."
Andrew Hockey added: "It has been a real privilege to serve as IOG's CEO since 2018. We have made great progress in that time and with IOG now established as a gas producer, it is the right time to pass on the baton.”
New chief executive Rupert Newall, meanwhile, said: “I would like firstly to pay tribute to the outstanding job Andrew has done in taking IOG from an unfunded micro-cap to an established, cash-generative UK gas production company.
“I can assure our shareholders that I will fulfil my new role with passion, drive and decisiveness, not just in addressing near-term operational challenges but also the significant growth opportunities ahead.
“I believe IOG has a compelling and competitive strategy focused on developing a portfolio of discovered gas resources through owned and operated infrastructure with a low carbon footprint.
“My priority is to ensure that strategy really delivers significant returns for the benefit of all our shareholders, whilst also playing our part in both energy security and energy transition.
“My clear focus will be on leveraging IOG's core strengths, including our key infrastructure ownership in the Saturn Banks catchment area, deep SNS expertise, environmental differentiation and robust partnership with CER.”