North Sea-Focused Independent Oil & Gas Secures Growth Funding
NORTH Sea focused Independent Oil & Gas has said it wants to acquire assets in the area after securing around £14 million loan funding from London-based financiers.
The Aim-listed firm said it was keen to capitalise on opportunities created by the downturn in the industry after meeting the conditions relating to a £13.55m funding package offered by the London Oil and Gas business.
“The Company is now well-funded with a strong balance sheet and access to finance to pursue a number of low risk, value accretive opportunities created in the current market conditions,” said chief executive Mark Routh.
Sector watchers have noted that lots of assets are for sale in the North Sea where some firms want to raise cash to help service debts or meet work commitments. The price of assets has fallen amid the crude price plunge since June 2014.
Independent said: “Several potential transactions are under consideration and one such transaction relating to a non-producing gas asset in the North Sea is at a particularly advanced stage.”
It explained subsequently that the comment referred to negotiations to acquire the 50 per cent of the Blythe find that it does not already own from Alpha Petroleum Resources.
Independent has been working on plans to drill an appraisal well on the Skipper heavy oil find off Shetland.
In January the company said it had delayed the Skipper well until there was greater stability and clarity in the oil market.
It said then that privately-owned London Oil and Gas had agreed in principle to provide £10m debt subject to contract.
Directors said the new loan combined with £3.55m debt offered previously by London Oil and Gas would give the firm financial security until at least mid-2018.
In August Independent said a firm it expected to provide investment that would help fund the development of Skipper had apparently lost interest.
The unnamed firm decided not to proceed with the planned investment following the renewed fall in the oil price in the summer.
In recent days Aberdeen-based Parkmead Group and Faroe Petroleum have underlined their interest in buying North Sea assets amid current market conditions.
