(Alliance News) - Independent Oil & Gas PLC on Wednesday said it expects a busy year ahead as it builds on its "significant progress" in 2019 by focusing on its project in the southern North Sea.
IOG says it delivered a series of milestones in 2019 to create a strong platform for the North Sea project. These included the raising of GBP19 million in equity, the completion of a farm-out agreement with CalEnergy Resources Ltd for half of IOG's southern North Sea assets for GBP165 million, and the EUR100 million bond issue.
It said that the joint venture with CalEnergy Resources is fully operational with the GBP40 million up-front payment received. The farmout agreement reached in October stated CalEnergy will pay IOG an initial GBP40 million cash payment and could pay an additional GBP125 million in core project costs.
Looking to the year ahead, the UK-focused oil & gas company says contracts for subsea, umbilicals, risers and flowlines as well as for platform are being finalised and are expected to be announced in the first quarter, upon the approval of the Phase 1 field development plan by the UK Oil & Gas Authority.
IOG said that the installation of both phase 1 platforms at Southwark and Blythe fields is scheduled for the first half of 2021.
Scheduled in summer 2020 is the pipe lay programme for the extension from the Thames Pipeline to the Southwark platform and the other smaller diameter lines which will connect up the Phase 1 fields.
IOG plans to build shareholder value in 2020 through licensing rounds and the acquisition & development of other non-owned assets in the southern North Sea.
"After an exciting year of progress in 2019 which culminated in declaring FID in the fourth quarter, 2020 will be a very busy period for IOG with numerous further milestones to deliver," said IOG Chief Executive Andrew Hockey.
"While remaining firmly focused on delivering our core project with maximum efficiency, we also see a variety of paths to build further shareholder value by realising the full potential of our gas hub approach and infrastructure ownership both on and offshore," he added.
Shares in Independent Oil & Gas closed 9.7% higher at 17.00 pence each on Wednesday in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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