04 Jan 2019
Update on London Oil and Gas loan facilitiesIndependent Oil and Gas plc ("IOG" or "the Company"), (AIM: IOG.L), the development and production company focused on becoming a substantial UK gas producer, notes that the Financial Conduct Authority is conducting an investigation into the affairs of London Capital and Finance plc (“LCF”) and that the FCA has required that LCF may not (without the prior consent of the FCA) deal in any way with its assets and must cease conducting all regulated activity. There is no direct relationship between LCF and IOG.
IOG wishes to clarify that LCF is not a shareholder in IOG’s primary financial backer, London Oil & Gas plc (“LOG”). LOG is a borrower from LCF and LOG is also a lender to IOG amongst other companies.
Under the total of £38.55m loan facility agreements signed between IOG and LOG between December 2015 and September 2018 (the “LOG Facilities”), sums owed by IOG to LOG are only repayable within 36 months of their drawdown and there is no mechanism under which LOG can demand early repayment save in an event of default by the Company. The Company has to date drawn a total of £30.7m under the LOG Facilities of which £0.7m is held in cash and £3.05m is due to be repaid in the next six months. The Company currently has further availability under the LOG Facilities of £7.85m. LOG has today re-confirmed to IOG that all sums agreed to be lent to IOG remain available to the Company and LOG has not received any call on any of its funds from LCF.
The Company is monitoring the situation with regard to LCF and LOG carefully and continues to progress its current forward funding plans as per its 29 November 2018 announcement.
|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|
|Peel Hunt LLP
Richard Crichton, David McKeown
|+44 (0) 20 7418 8900|
Georgia Edmonds, Tom Huddart, Monique Perks
|+44 (0) 20 3757 4995|
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 of 114 MMCF/d (c. 20,000 Boe/d) from its substantial Core Project (2P gas Reserves of 302 BCF) via an efficient hub strategy. In addition to the independently verified 2P reserves, IOG now has independently verified 2C contingent gas resources of 108 BCF in Goddard and best estimate unrisked prospective gas resources of 202 BCF in Harvey and Goddard. Alongside this IOG continues to pursue value accretive acquisitions to generate significant shareholder returns. All IOG’s licences and the Thames Pipeline are owned 100% and operated by IOG.
Certain information communicated in this announcement was, prior to its publication, inside information for the purposes of Article 7 of Regulation 596/2014.