IOG acquires license containing Skipper discovery

Independent Oil and Gas plc (IOG), (AIM: IOG.L), a North Sea-focused oil and gas company, has signed a sale and purchase agreement to acquire 50% of license P1609 containing the Skipper discovery from Alpha Petroleum Resources Ltd. The Skipper oil discovery is in Block 9/21a in the Northern North Sea in license P1609. 

This transaction will result in IOG’s independently verified 2C resources increasing by 13.1 MMBbl. Upon completion of the acquisition, IOG will become operator and will own 100% of the license. The acquisition is subject to confirmation of funding and regulatory approvals.

IOG is in discussions with the UK Department of Energy and Climate Change (DECC) and the Oil & Gas Authority (OGA) regarding assuming operatorship of license P1609. The initial work program to drill the commitment well on the license in mid-2016 has been proposed and is subject to a license extension, which currently expires on Sept. 30. The OGA will consider any request, subject to confirmation of funding for the well and a rig contract. IOG is also in advanced discussions with a party relating to a rig contract for the initial well and anticipated subsequent development wells on Skipper.
IOG says it continues to make good progress with regard to securing longer-term funding to appraise and develop its assets through to production, which would include 100% of Skipper. A letter of intent has been signed with an internationally listed group with a multibillion-dollar market capitalization relating to the funding which is anticipated to complete by mid-August.

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