LONDON (Alliance News) - Shares in Independent Oil & Gas PLC tumbled on Thursday as the company said that market volatility is "not conducive" to deliver the financing plan for its core North Sea project before the year-end.
Shares in the development & production company were trading down 16.0% at 24.00 pence each.
The company is 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.
It added: "Current oil price volatility and capital market conditions are not conducive to deliver this financing plan before year end. However, the company is fully ready to progress its funding plans early in 2019 as soon as markets stabilise with the objective of securing financing and final investment decision in the first quarter of 2019."
The company's Chief Executive Officer Andrew Hockey said that completing the financing in the new year will likely enable an optimal funding outcome and maximise the value for shareholders.