Independent Oil & Gas PLC Conclusion to Skipper well creditor discussions (0064A)
December 21 2017 - 1:00AM
UK Regulatory
TIDMIOG
RNS Number : 0064A
Independent Oil & Gas PLC
21 December 2017
21 December 2017
Independent Oil and Gas plc
Successful conclusion to Skipper well creditor discussions
Independent Oil and Gas plc ("IOG" or the "Company"), the
development and production focused Oil and Gas Company, is pleased
to announce that discussions with the creditors for the remaining
liabilities relating to the 2016 Skipper well have concluded. The
details are as follows: -
-- A total of GBP6.78m was due to be settled by 20 December 2017.
-- GBP4.47m has been deferred with final payments due either by
the end of August 2018 or Field Development Plan Approval for the
Company's SNS developments, whichever occurs first.
o Interest will accrue at LIBOR + 9%.
o The Company may repay early without penalty.
-- GBP1.87m of the above total due has been converted into new
ordinary shares in IOG at a price of 19p as detailed below.
-- The remaining cash element of the settlement will be paid from existing facilities.
-- All agreements are commercially settled, final documentation will be finalised shortly.
Conversion into Shares
-- Baker Hughes, a GE company ("BHGE"), has agreed to convert
GBP1.75m of the Skipper debt, plus a fee of GBP0.1m for the
foregone interest from conversion, into 9,736,842 new ordinary
shares in IOG.
-- If BHGE wish to sell these shares they may only do so in an
orderly market. This is agreed to mean a maximum of one quarter of
the total number of shares issued in each quarterly period in
2018.
-- In the event the shares are sold at an average price above
19p, any excess proceeds will be used to pay down any outstanding
amount to BHGE or otherwise paid to IOG. If the shares are sold for
less than GBP1.85m, IOG will make up the shortfall through the
issue of new shares or with cash.
-- Should BHGE retain shares under this agreement the price used
to calculate any excess or shortfall will be the closing price on
31 December 2018.
-- Another creditor has also agreed to convert an outstanding
debt of GBP124,320. Including a negotiated conversion fee, the
Company has agreed to issue 742,418 new shares to this
creditor.
-- The orderly market restrictions in this case limit any share
sales to one third each month over the first quarter of 2018.
-- Should this creditor retain shares under this agreement the
price used to calculate any excess or shortfall will be the closing
price on 31 March 2018.
The Company has applied to the London Stock Exchange for
admission of the New Ordinary Shares to trading on AIM
('Admission'). Admission is expected to occur on 29 December 2017
subject to execution of final documentation. Following Admission
there will be 120,209,629 Ordinary Shares in issue. Accordingly,
this number may be used by shareholders as the denominator for the
calculations by which they will determine if they are required to
notify their interest in, or a change to their interest in the
Company under the FCA's Disclosure and Transparency Rules.
Mark Routh, CEO and Interim Chairman of IOG commented:
"The Company is pleased to have successfully concluded creditor
discussions and is very appreciative of the support from the
service sector both in enabling the drilling of the Skipper
appraisal well in August 2016 and in terms of extending deferrals
or equity conversion. This resolution enables us to maintain a firm
focus on our ongoing Southern North Sea development contracting and
funding processes. We look forward to securing Field Development
Plan approvals in 2018 to keep us on track for significant gas
production in 2019. We are grateful for the continued support from
our financial backers London Oil & Gas in providing the funds
from existing facilities to manage these historic debts."
-ENDS-
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
Enquiries:
Independent Oil and Gas plc
Mark Routh (CEO) +44 (0) 20 3879
James Chance (CFO) 0510
finnCap Ltd
Christopher Raggett / Anthony
Adams +44 (0) 20 7220
(Corporate Finance) 0500
Camarco +44 (0) 20 3757
Georgia Edmonds / Tom Huddart 4980
Notes
About Independent Oil and Gas:
IOG owns substantial low risk, high value gas Reserves in the UK
Southern North Sea. The Company is targeting a 2P peak production
rate in excess of 200 MMcfd (c. 35,000 Boe/d) from its substantial
current portfolio via an efficient hub strategy. Alongside this it
continues to pursue value accretive acquisitions, to generate
significant shareholder returns. All IOG's Licences are owned 100%
and operated by IOG.
Further information can be found on
www.independentoilandgas.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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