TIDMIOG

RNS Number : 7320H

IOG PLC

31 July 2023

31 July 2023

IOG plc

Bondholder discussions

IOG plc ("IOG", or "the Company"), (AIM: IOG.L) provides a further progress update on discussions with bondholders and on production operations.

The existing waiver confirmed on 22 June 2023 postponed the interest payment due on 20 June 2023 under the EUR100 million senior secured bond ("Bond") to 31 July 2023, together with certain other amendments. Since then, the Company has held extensive discussions with bondholders and their advisors and is now at an advanced stage of agreeing a further waiver in order to provide an additional period of stability to address balance sheet challenges. The Company expects that this waiver will be signed as soon as practicable.

In the event that the Company does not obtain a further waiver from bondholders, an event of default under the Bond Terms may result, which could potentially lead to the Company being put into administration. The Directors do not believe that this is a likely outcome and anticipate that the waiver will provide the Company with a further period of stability. In addition, no plan has yet been agreed around a longer-term solution, on which a number of potential options will continue to be discussed with bondholders.

Operations

-- Blythe H2 gas rate has seen natural decline to approximately 26 mmscf/d currently, with over 95% operating efficiency in July and no associated water production

-- No change to Blythe remaining reserves estimates (FY2022: gross 1P / 2P / 3P 24.6 / 42.3 / 46.8 billion cubic feet equivalent)

-- The Perenco Bacton terminal annual maintenance shutdown is scheduled for early August and expected to last approximately one week, which will curtail average production in that month

-- Gas prices have remained relatively weak over the summer, with realised prices averaging in the 70-75p/therm range in July; market volatility remains high.

Rupert Newall, CEO, commented:

"We are now at an advanced stage of agreeing a further waiver, which we expect will be signed as soon as practicable. We continue to have constructive discussions with bondholders and remain focused on delivering an outcome in the best interests of all stakeholders in IOG. We will keep the market advised on further progress at the appropriate times."

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.

Enquiries:

 
IOG plc                                                info@iog.co.uk 
 Rupert Newall (CEO) 
 James Chance (Head of Capital Markets & ESG) 
Vigo Consulting                                iog@vigoconsulting.com 
 Patrick d'Ancona / Finlay Thomson 
finnCap Ltd 
 Christopher Raggett / Simon Hicks 
Peel Hunt LLP 
 Richard Crichton / David McKeown

About IOG:

IOG is a UK developer and producer of indigenous offshore gas. The Company began producing gas in March 2022 via its offshore and onshore Saturn Banks production infrastructure. In addition to its production assets, IOG operates several UK Southern North Sea licences containing gas discoveries and prospects which, subject to future investment decisions, may be commercialised through the Saturn Banks infrastructure. All its assets are co-owned 50:50 with its joint venture partner CalEnergy Resources (UK) Limited. Further details of its portfolio can be found at www.iog.co.uk .

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

UPDEAPXFDDPDEEA

(END) Dow Jones Newswires

July 31, 2023 05:00 ET (09:00 GMT)

Iog (LSE:IOG)
Historical Stock Chart
From Nov 2024 to Dec 2024 Click Here for more Iog Charts.
Iog (LSE:IOG)
Historical Stock Chart
From Dec 2023 to Dec 2024 Click Here for more Iog Charts.