The Board of Independent Oil and Gas plc has noted 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.
IOG was established in February 2011, combining the UK assets of MOST Inc. and Ebor Energy Inc. IOG now owns 50% of the Blythe gas field in the Southern North Sea (blocks 48/22b and 48/23a) and 50% of the Skipper licence south east of the Shetlands (block 9/21a). ATP Oil & Gas Corporation is the operator of, and owns, the remaining 50% of both fields. IOG was awarded the “Skipper West” promote licence (blocks 8/20a and 8/25a) at 100% working interest in May 2013.
Press Release, November 26, 2013