IOG raises nearly $110 million from bond issue, releases Maersk rig

Independent Oil and Gas (IOG) has confirmed that a settlement of its EUR 100 million (around $109.8 million) five-year senior secured bond took place on September 20.

Maersk Resilient; Author: SP Mac

IOG said earlier this month that the proceeds of the bond would be used to fund capital expenditure on the company’s Core Project in the UK Southern North Sea, financing costs, and general corporate purposes.

The settlement date of the bond was September 20, giving an expected maturity of September 20, 2024.

The company previously stated that the bond commitment fulfilled a major condition for completion of the farm-out transaction to CalEnergy announced in July 2019.

To remind, IOG entered into binding agreements to farm out 50 percent of its Southern North Sea assets, excluding Harvey, to CalEnergy.

As part of the farm-out, CalEnergy was also granted an option to acquire 50 percent of the Harvey licenses within three months of completion of the Harvey appraisal well.

 

Contract end for Maersk rig

 

IOG also said on Monday that the Maersk Resilient jack-up rig went off contract on September 19. The rig started drilling the Harvey appraisal well in early August and completed the well in under two months, confirming a 49ft gas column earlier in September.

Data acquired from the well is now undergoing analysis to generate a revised technical assessment of reservoir gas volumes and deliverability, meeting the primary objectives of the well.

Andrew Hockey, CEO of IOG, said: “We are pleased to have completed the settlement process for our EUR 100 million bond raise, which with the proceeds to come from our farm-out to CalEnergy Resources will ensure we are fully funded for our Core Project.

“We are also delighted to have completed the drilling of the Harvey appraisal well safely and without incident and look forward to sharing the results of the well analysis in due course.”


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