News blog

Independent Oil and Gas

BY: Andrew Hore |
POSTED: 05/11/2014 |

Independent Oil & Gas has raised £450,000 at 11p a share, with the five directors contributing £100,000.

The cash will provide additional working capital for Independent, which is still seeking to acquire producing assets funded by debt so that the income can contribute to funding the business.

The share price has fallen 0.63p to 10.63p, which values Independent at £7.36m. Net debt was £252,000 at the end of June 2014.

Mehdi Varzi has retired as chairman and chief executive Mark Routh has become interim executive chairman.

The directors all bought additional shares but their total stake in the company has been diluted from 42.6% to 41.4%. They are deferring all or part of their salaries to reduce cash outflows from the business and these salaries will be replaced by options with prices of 30.53p a share and 30.3p a share depending on in what period the salary was meant to be paid.

Independent is still awaiting news about three licence applications in the UK 28th licensing round. These licences include discovered resources estimated at 45 million barrels of oil equivalent and the award of these licences should be announced by the end of the year.

Independent was awarded the Blythe East licence area in February and has acquired the nearby Cronx licence. Talks with nearby infrastructure owners could enable Cronx to produce gas in late 2016. BP Gas Marketing is providing a £3m bridging loan to fund the well that Independent is committed to drilling on Cronx.

Alpha Petroleum Resources has acquired the owner of the other 50% of Independent’s Blythe and Skipper assets.

A memorandum of understanding signed with Ping Petroleum to jointly bid for producing assets in the UK North Sea.

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