IOG Delays North Sea Project Financing

UK based oil and gas development & production company Independent Oil and Gas Plc (IOG)cautioned that current oil price volatility and capital market conditions aren’t conducive to deliver its financing plan for the core Southern North Sea project before year-end.

The company which explores for and develops oil and gas properties in the North Sea said in a press release that it was ready to enter the execution phase of its core development project in the UK Southern North Sea, but due to volatile market conditions the financing for the project has been delayed.

"The development expenditure for Phase 1 of the core project is expected to be funded through a senior secured bond issuance and the issue of new equity in the firm," Independent Oil & Gas explained.

The company said it is technically ready to achieve ‘first gas’ within 20 months of making its final investment decision, and, it is “fully ready” to progress its funding plans early in 2019 as soon as markets stabilize.

The final investment decision is now anticipated in the first quarter of 2019.

Andrew Hockey, IOG chief executive said: “The company considers that the current equity and debt market conditions are not sufficiently stable for IOG to proceed to complete the funding process before the year-end.”

"Having considered carefully and taken due advice, the Board believes that it is in the best interests of shareholders to do so as early as possible in the New Year. In our view, this short delay to the existing timetable is likely to enable an optimal funding outcome and maximise the value for shareholders," he added.