Independent Oil and Gas plc (IOG) has signed a Sale and Purchase Agreement to acquire the 50% of licence P1609 in the UK North Sea containing the Skipper discovery from Alpha Petroleum Resources Ltd.
According to the press release, this transaction will result in IOG’s independently verified 2C resources increasing by 13.1 MMBbls.
Upon completion of the acquisition, IOG will become Operator and will own 100% of the licence. The acquisition is subject to confirmation of funding and regulatory approvals.
IOG says it is currently in discussions with the Department of Energy and Climate Change (DECC) and the Oil & Gas Authority (OGA) regarding assuming operatorship of licence P1609. Their approval is subject to confirmation of IOG’s Technical and Environmental Competence.
The initial work programme to drill the commitment well on the licence mid-2016 has been proposed and is subject to a licence extension, which currently expires on September 30, 2015. The OGA will consider any request, subject to confirmation of funding for the well and a rig contract.
IOG says it is in advanced discussions with a party relating to a rig contract for the initial well and anticipated subsequent development wells on Skipper.
“IOG continues to make good progress with regard to securing longer term funding to appraise and develop its assets through to production, which would include 100% of Skipper,” the company said in the statement.
A Letter of Intent has been signed with an internationally listed group with a multi-billion dollar market capitalisation relating to the funding which is anticipated to complete by mid-August.
“It should be noted that the funding is subject to negotiation and the approval of various counterparties and IOG and that there can be no guarantee that IOG will secure such financing,” the company explained.
Mark Routh, CEO of IOG said: “We have been working hard to secure full ownership of this highly attractive licence and to secure the necessary funding. We are delighted to be making positive progress on both fronts and look forward to updating shareholders on our financing in the near future.”