Independent Oil & Gas Sets Well Drilling Date; To Issue More Shares
July 14 2016 - 03:56AM
Dow Jones News
By Alex MacDonald
LONDON--Independent Oil & Gas PLC (IOG.LN) said Thursday it
expects to start drilling an appraisal well on the Skipper oil
discovery on July 22 and plans to issue shares to the drill rig
operator as a form of payment for services to be rendered.
Skipper lies in Block 9/21a in license P1609 in the northern
North Sea. IOG, the owner and operator of the license, expects the
well drilling to take approximately 22 days and plans to announce
the results in mid-August.
In the meantime, it confirmed that it has paid drill rig
operator Transocean Ltd. (RIG) $1.73 million in advance for its
services by issuing 2.7 million shares at 18.375 pence share.
Independent Oil & Gas will now issue 6.4 million shares
15.375 pence a share to Transocean to satisfy the balance of the
required advance payment and associated costs.
A further 75,000 shares will be issued to another contractor for
services rendered.
The aforementioned share issue accounts for 9% of the company's
enlarged 102 million shares outstanding.
The company believes that further drilling at Skipper will help
convert an estimated 34.1 million barrels of contingent oil
resources, based on a 25% recovery factor, into proven and probable
reserves.
Write to Alex MacDonald at alex.macdonald@wsj.com
(END) Dow Jones Newswires
July 14, 2016 03:41 ET (07:41 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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