LONDON (Alliance News) - Independent Oil & Gas PLC on Friday said it has agreed on a deal with London Oil & Gas Ltd for a secured convertible loan facility for up to GBP10.0 million. The North Sea-focused company had proposed the funding in mid-January.
"On satisfying the conditions to draw down, the company will be fully funded for its corporate G&A [general and administrative expenses] and licences fees until mid-2018 and can now focus upon building an exciting phase of growth," Chief Executive Mark Routh said.
"This transaction will significantly strengthen our balance sheet and enhances our access to capital, thereby enabling us to capture attractive, value enhancing opportunities created by the current phase in the oil price cycle," Routh added.
The chief said the company is ready to remobilise on the appraisal well at the earliest opportunity, following the recent extension to its Skipper licence to the end of 2016.
Meanwhile, the company named Martin Ruscoe as a non-executive director, with Marie-Louise Clayton to step down as a non-executive. Ruscoe is currently a director of London Group Ltd, which London Oil & Gas is part of.
In addition, Clint Redman is joining the company as head of corporate finance. Eric Bosshard was named technical advisor to the board.
Redman is currently head of corporate finance at London Oil & Gas. Bosshard is currently president and technical director at London Oil & Gas.
Shares in Independent Oil & Gas were up 33% at 8.00 pence on Friday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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