29 Mar 2018
Final Results for the Year Ended 31 December 2017Independent Oil and Gas plc ("IOG" or the "Company") (AIM: IOG.L), the development and production focused oil and gas company, is pleased to announce its results for the Year Ended 31 December 2017.
- Strong progress made delivering its gas hub strategy in the UK Southern North Sea (â€˜SNSâ€™) prioritising its core assets and acquisition opportunities
- Significant reserves and contingent resources upgrade, net 2P reserves now 303bcf (45bcf at Blythe Hub, 258bcf at Vulcan Satellites Hub.)
- Submitted the Blythe Hub Field Development Plan (â€˜FDPâ€™), comprising the Blythe and Elgood fields and Vulcan Satellites hub development FDP to the OGA
- Licence P1736 containing the Blythe gas discovery extended by 12 months to 31 December 2018
- Licence P2342 comprising Block 48/25a including the western part of the Nailsworth field awarded by the OGA in the 29th Supplementary Offshore Oil and Gas Licensing Round
- Acquisition of Thames Gas Pipeline for a nominal consideration providing the proposed export route for IOGâ€™s Southern North Sea assets.
- Letters of Intent (â€˜LoIâ€™) signed with key contractors on SNS Gas Development Project
- Significant Prospective Resources confirmed with Best Estimate Gross Prospective Resources of 114bcf (90 bcf on Block) and commitment well for Harvey
- New Â£10 million convertible loan facility (the â€˜New Facilityâ€™) successfully signed with existing lender LOG convertible ordinary shares in the Company at a conversion price of 19p, being a 15% premium to the closing share price of the Company post period end
- Cash balance at year end of Â£145k (2016: Â£247k) with available facilities from LOG to finance ongoing working capital requirements
- Approx Â£1.0 million remained to be drawn of the aggregate availability of Â£13.55 million from LOG (including accrued interest on the Â£10 million facility) at year end
- Loss for the year of Â£2.75 million (2016: Â£21.44 million loss)
- Successful conclusion to Skipper Well Creditorsâ€™ discussions
- Clear objective in 2018 to progress the SNS Dual Hub Project to FID and to FDP approval by demonstrating the viability of the recommissioned Thames Pipeline and progressing development planning and execution.
- Deliver an appropriate capital structure for the Company and obtain full financing for the SNS Hubs.
- Progress Harvey appraisal plans.
- Evaluate accretive production deals.
- Expand the portfolio through Licensing Round activity and acquisition.
Download the 2017 Annual Report here.
I am pleased to be able to report that 2017 has seen strong progress on all fronts for IOG on our UK Southern North Sea project. We continue to move toward our goal of bringing indigenous UK gas into the import-dependent UK market safely and at a low unit cost. The classification of our gas resources as reserves at the Vulcan Satellites Hub and Blythe Hub was an important milestone in the development of the company and we are making good progress in defining the development and putting in place the necessary funding to ensure its execution. Harvey provides exciting upside in our portfolio and we are planning to appraise it as soon as possible.
We have a busy work programme over the coming 12 months and the newly strengthened management and operations team are focused on successfully delivering our gas hub strategy and creating value for all our stakeholders.
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
|Independent Oil and Gas plc
Andrew Hockey (CEO)
James Chance (CFO)
|+44 (0) 20 3879 0510|
Christopher Raggett / Anthony Adams
|+44 (0) 20 7220 0500|
Georgia Edmonds / Tom Huddart
|+44 (0) 20 3757 4980|