27 Sep 2018
Interim Results 2018Independent Oil and Gas plc ("IOG" or the "Company") (AIM: IOG.L), the AIM-listed development and production focused oil and gas company with key interests in the Southern North Sea ("˜SNS'), is pleased to present its unaudited interim results for the six months ended 30 June 2018.
- Completion of the transformational acquisition of 100% operated ownership of the Thames Pipeline ("˜PL370') and the demonstration of its viability to provide a stable export route for the Company's 100% owned gas assets straight to the UK market and National Transport System ("˜NTS').
- Offshore site and route survey along PL370, all proposed platform locations and intra-field connecting pipelines completed in May 2018;
- Completion of the Intelligent Pigging Programme ("˜IPP') confirmed excellent condition of the PL370 infrastructure;
- Post period end, completion of tethered pig inspection together with 150-bar pressure hydrotest confirms PL370 economic life good for the next two decades and condition "˜as new' confirmed by analysis undertaken by Oilfield Testing Services.
- Significant operational progress towards delivering IOG's SNS gas hub strategy.
- Environmental Impact Assessment ("˜EIA') submitted for the Blythe Hub in January 2018 and the Vulcan Satellites Hub in April 2018;
- Platform fabrication Front End Engineering and Design ("˜FEED') was completed by the Heerema Fabrication Group on 30 April 2018; and
- FEED awarded in May 2018 to Wood Group UK Limited for the Subsea, Umbilicals, Risers and Flowlines ("˜SURF') scope of work on the dual hub development.
- Strengthened portfolio around PL370 with the award of 100% ownership of three new licence areas, during the UKCS 30th Licensing Round - Goddard, Harvey SE and Abbeydale containing 224 BCF of discovered 2C resources.
- 3D seismic reprocessing over the Harvey structure to optimise appraisal well location completed post period end.
- Refreshed Board and management team to drive future growth.
- Andrew Hockey succeeds Mark Routh as Chief Executive Officer and Mark Routh appointed Non-Executive Chairman;
- Mark Hughes appointed as Chief Operating Officer; and
- Post period end, Fiona MacAulay appointed as independent Non-Executive Director ("˜NED') succeeding Andrew Hay who stepped down as independent NED in February 2018.
- Additional £10 million convertible loan facility signed with London Oil & Gas Limited ("˜LOG') on 21 February 2018, with a further £15 million funding package secured from LOG on 13 September 2018, post period end, principally to fund the Harvey appraisal well.
- Cash balance at period end of £4.61 million.
- Post tax loss for the six months ended 30 June 2018 was £2.56 million.
- Harvey appraisal well to spud in January 2019, with the potential to double the resource size of the Blythe Hub.
- Final Investment Decision ("˜FID') on track for Q4 2018, with first gas targeted late Q2 2020.
- Continue to progress post FID funding options including debt, equity, offtake and contractor financing.
Andrew Hockey, CEO of IOG, said:
We have made excellent progress in the first half of this year as we focus our efforts on realising the potential of our SNS gas hubs. The completion of the acquisition of the Thames Pipeline transforms the viability of this project providing a stable export route for our gas straight to the currently import-dependent UK market. We are delighted with the progress we are making on advancing this project towards production and look forward to making further updates in due course.
We are also pleased to have been successful in the 30th UKCS Licensing Round where our targeted approach resulted in the award of all three licences for which we applied, adding significant resources to our portfolio.
The full Interim Report can be downloaded here
Certain information communicated in this announcement was, prior to its publication, 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|
|+44 (0) 20 7220 0500|
|Peel Hunt LLP
|+44 (0) 20 7418 8900|
|+44 (0) 20 3757 4980|
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 (2P Reserves of 303 BCF) 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.
The Directors present their interim report of operations and unaudited consolidated financial statements of Independent Oil and Gas plc ("the Company") and its subsidiaries ("the Group") for the six months ended 30 June 2018. All amounts are shown in Pounds Sterling, unless otherwise stated.
This interim financial report is the responsibility of and has been approved by the Directors. The Directors are responsible for preparing the Interim Report which has not been audited by the Company's auditors. In addition to the results for the first six months of 2018 ("1H 2018"), comparative information is provided for the six months ended 30 June 2017 ("1H 2017"). Comparative information for the Group's financial position is also provided the year ended 31 December 2017 ("FY 2017").
As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards ("IFRSs") as adopted by the European Union.