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Final Results for the Year Ended 31 December 2019

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26 March 2020

 

Independent Oil and Gas plc

Final Audited Results for the Year Ended 31 December 2019

 

Independent Oil and Gas plc ("IOG" or "the Company"), (AIM: IOG.L), the development and production company focused on becoming a substantial UK gas producer, is pleased to announce its final audited results for the Year Ended 31 December 2019.

 

2019 Highlights

 

Corporate and Operational

 

  • Farm-out of 50% of Core Project to CalEnergy Resources Limited (“CER”) with IOG retaining operatorship of all its assets
  • Acquisition of the onshore Thames Reception Facilities ("TRF") at Bacton Gas Terminal
  • Core Project Phase 1 Final Investment Decision (FID) taken in Q4 2019 with a view to first gas in Q3 2021
    • Development works kicked off across all four key elements: platforms, subsea, drilling and onshore
  • Harvey appraisal well, 48/24b-6, drilled safely in Q3 2019  
    • Initial analysis indicates c.40 Bcfe mid-case recoverable volumes at Harvey and c.100 Bcfe at Redwell
  • Strengthening of board, management and operational team
  • Alliance with CER for further Southern North Sea (“SNS”) business development
    • Number of licence applications in 32nd Offshore Licensing Round in alliance with CER

Financial  

  • £40 million Farm-out up-front payment received from CER
    • £17.1 million used simultaneously to repay existing debt
  • £125 million of development carry committed under Farm-out agreement
    • £60 million for Phase 1 and £65 million for Phase 2  
  • €100m 5-year senior secured bond issue successfully raised from Nordic, European, UK and Asian institutional investors and subsequently listed on Oslo Børs 
  • Institutional equity fundraise, board/management subscription and Open Offer completed, raising combined gross proceeds of £18.9 million
  • Cash balance at period end of £98.3 million (2018: £0.7 million), including restricted cash of £82.0 million
  • Post tax profit for the year of £15.0 million (2018: Loss £5.6 million)
  • Group net cash at year end £8.0 million
  • Converted 8p convertible loan into Ordinary Shares at Farm-out completion
  • Restructured 19p convertible loan into a long-term, unsecured, non-interest bearing convertible Loan Note Instrument

Board and Management

  • Esa Ikaheimonen appointed as Non-Executive Director
  • Neil Hawkings appointed as Non-Executive Director
  • Rupert Newall appointed as Chief Financial Officer and Executive Director

Post Year End Developments

  • Platform construction activities underway
  • Competitive tender process commenced for jack-up drilling rig for Phase 1 drilling programme
  • Established Well Management Company selected to support IOG’s in-house drilling team in delivering best in class well execution 
  • Onshore TRF refurbishment activities ramping up; FEED studies being executed by Worley
  • £60 million Phase 1 development carry and €100 million bond issue being utilised as planned
  • Further seismic reprocessing underway to support plans for Harvey and Redwell licences as incremental developments beyond the Core Project
    • Discussions ongoing as to potential CER participation in these licences following expiry of farm-in option in February 2020
  • Core Project platforms estimated to have industry-leading average carbon intensity at just 0.2kg CO₂/boe, versus 21kg UK North Sea 2018 average   

 

 

 

Click on, or paste the following link into your web browser, to view the associated full announcement.

http://www.rns-pdf.londonstockexchange.com/rns/6505H_1-2020-3-26.pdf

 

 

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