26 Nov 2013
Update on the Sale of ATP Oil and Gas UK Ltd
The Board of Independent Oil and Gas plc (“IOG” or the “Company”) (AIM:IOG.L), the North Sea focused Oil and Gas Company, is pleased to note the US court documents posted today confirming the first scheduled US hearing relating to the sale of ATP Oil and Gas UK Ltd (“ATP UK”) on 19th December 2013. ATP UK is the operator and owns 50% of each of the Blythe and Skipper licences with IOG owning the remaining 50%.
The proposed buyer of ATP UK has been identified in the US court papers as Alpha Petroleum (UK) Holdings Limited (“Alpha Petroleum”) and the Board understands that Alpha Petroleum’s intention is to retain the ATP UK management team in support of the existing business plan relating to its existing assets including Blythe and Skipper.
Mark Routh, CEO, commented:
This is a significant event for IOG because once the sale of ATP UK has concluded IOG will be able to proceed with the development and appraisal programmes for Blythe and Skipper. We have met Alpha Petroleum and have high regard for both them and the ATP UK management team and subject to the relevant approvals being obtained for the sale of ATP UK, we look forward to working with them and progressing our joint assets as quickly as possible. We will provide further updates as appropriate.
The Board of IOG understand that Deloitte LLP is managing the sale of ATP UK. The proposed transaction structure will allow the shares of ATP UK to be sold and retain its status as an operator in the North Sea with new owners.
ATP Oil & Gas Corporation owns the shares of ATP UK and, as a consequence of entering Chapter 11 bankruptcy in 2012, the sale needs to be approved by various parties including the US Bankruptcy Court.
Completion of the share sale will be subject to a Company Voluntary Arrangement which will commence after the share sale contract has been exchanged.
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.