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First Day of Dealings and Admission to AIM

The Board of Independent Oil and Gas plc ("IOG" or the "Company"), the North Sea focused Oil and Gas Company, is pleased to announce its admission to trading on AIM at 8.00am today.

Highlights:

  • Fully subscribed offer - successfully raising £2m through Charles Stanley
  • The fund raise at admission was priced at 23.79p, with a Market Capitalisation at listing of £14.2m
  • Three licences in the North Sea (Blythe, Skipper and Skipper West), which include proven gas reserves, contingent oil reserves and nearby exploration upside:
    • Proven reserves of 3.05 MMBoe
    • Contingent 2C resources of 13.1 MMBbls
  • Net NPV10 from the ERC Equipoise and AGR TRACS CPRs for Blythe and Skipper combined is £166m
  • Anticipating award of a 4th Licence, Blythe East, post conclusion of environmental review and looking at other potential opportunities including from the forthcoming 28th licencing round
  • Proven management team with strong background of success and value creation in the UKCS
  • Funds raised provide platform for next stage of growth, with an established near term work programme including:
    • Blythe FDP submission
    • Preparation for the Skipper appraisal well planned for 2014
    • Working up Skipper West prospects

    Commenting, Mark Routh, CEO of IOG, said:

    Dealings in the Company’s Ordinary Shares will trade under the AIM symbol, IOG and the ISIN number is GB00BF49WF64.

    The Company has raised £2 million (before expenses) through a subscription of 8,405,800 new Ordinary Shares. IOG’s market capitalisation at admission is £14.2 million. Charles Stanley Securities is the Company’s Nominated Adviser and Broker.

    IOG is a UK based energy company that has been established to identify, acquire and commercialise proven oil and gas fields in the United Kingdom Continental Shelf and Irish Sea, complemented with select, targeted exploration. IOG is focused on building a significant oil and gas company which will maximise shareholder returns through the development of hydrocarbon reserves and the acquisition, trading and monetisation of licence interests.

    IOG’s strategy is to target “stranded” assets and dormant discoveries, especially those near to existing and, ideally, owned infrastructure (the “Hub Strategy”). These are assets that are marginal for the major oil companies but are typically high margin developments that are material for a smaller independent company.

    In October 2011, IOG completed the acquisition of the 50 per cent interests in the Blythe gas field in the Southern North Sea and a heavy oil discovery in the Skipper licence, south east of the Shetland Isles. In May 2013, IOG was awarded 100 per cent of the Skipper West licence, thus creating the first potential hub within the Company’s portfolio. These three licences include proven gas reserves, contingent oil resources and nearby exploration upside respectively.

    The aim is now to build on the existing assets to achieve a diversified, balanced, portfolio of near and long term developments with exploration upside that complement the existing operations. This will include the acquisition of producing fields or near-term production if the acquisition price results in value accretion.

    Key Statistics  
    Subscription Price 23.7931 pence
    Number of new Ordinary Shares to be issued pursuant to the Subscription 8,405,800
    Number of Ordinary Shares in issue upon Admission 59,531,854
    Gross proceeds of the Subscription £2 million
    Net proceeds of the Subscription receivable by the Company £1.6 million
    Subscription Shares as a percentage of the enlarged issued share capital 14.12 per cent
    Market capitalisation, upon Admission, at the Subscription Price £14.2 million
    Ticker Symbol: IOG
    ISIN GB00BF49WF64
    SEDOL BF49WF6

    About Independent Oil & Gas:

    IOG is an oil & gas company with established assets focused on the UK North Sea. The company’s strategy is to deliver near term development and production assets in North West Europe, through its extensive technical and commercial expertise, whilst maintaining some exposure to exploration upside. The Company is looking to grow both organically and through acquisition.

    IOG has four licences in the North Sea: In addition to the Blythe and Skipper licences co-owned 50% with ATP UK, IOG has a 100% working interest in two licences awarded in the 27th licencing round. One is to the west of and adjacent to Skipper, the other is to the east of Blythe. Both these licences have potential resources that could be tied back to developments at Skipper and Blythe respectively.