Independent Oil and Gas plc (IOG), the North Sea-focused oil and gas company, has executed a well management contract with AGR Well Management Limited for the drilling of the appraisal well on Skipper, in the UK North Sea.
The well is on track to spud in late January or early February 2016 as IOG recently entered into two loan agreements to help fund the drilling of the Skipper appraisal well.
In September 2015, IOG agreed terms with AGR, which was expected to be the designated Well Operator, and made a formal request to the Oil and Gas Authority (OGA) that AGR takes on this role upon completion of the Skipper acquisition and in conjunction with IOG becoming the licence operator.
According to IOG, AGR’s fees pursuant to this contract will be part satisfied by the issue of ordinary shares and part satisfied by payment in cash. Initial payments at IOG’s election of £657,220 may be satisfied either in cash or by the issue of new ordinary shares at an issue price equal to the volume weighted average of the price of the ordinary shares for the calendar month prior to issue.
Mark Routh, CEO of IOG commented: “We are delighted to have signed the well management contract with AGR and are working hard to finalise the rig contract in the near term. We look forward to updating shareholders in due course.”