IOG North Sea, an independent, London-listed oil and gas company, has secured an additional loan of up to £800,000 from London Group Limited.
IOG, a company with a market cap of slightly above £5 million, plans to invest the cash in its gas assets in the Southern North Sea and also, the investment will allow for additional contingency for the upcoming Skipper appraisal well.
Skipper has independently verified gross 2C resources of 26.2 MMBbls. IOG management estimates that the recoverable oil from Skipper is 34.1 MMBbls based on a recovery factor of 25%.
Mark Routh, CEO of IOG, said: “We are pleased to have agreed this additional loan from London Oil & Gas. It will enable us to further de-risk and add value to IOG’s Southern North Sea asset portfolio. It will also fund corporate needs for 2016 and provide an extra layer of contingency for the fully funded Skipper appraisal well.”
Today’s loan announcement is an addition to the loan agreements IOG signed on December 4, when it secured loans from GE O&G and London Group Limited of up to £4.75 million. Of this sum, GE O&G is providing £2 million and London O&G is providing £2.75 million.
On the occasion, IOG said it was in advanced talks to secure a drilling rig for the Skipper appraisal, with anticipated spud date somewhere between late January and early February 2016.
Offshore Energy Today Staff