Independent Oil and Gas (IOG) has completed its acquisition of the Southern North Sea’s Blythe discovery.
IOG bought the development’s remaining 50% from Alpha Petroleum for £6.5million, making it sole operator. IOG made an initial payment of £1.5million. The remaining $5million will be paid at first gas.
Chief executive Mark Routh said: “We are delighted to have completed the acquisition of the Blythe gas discovery which immediately doubles our independently verified 2P reserves and gives the Company 100% ownership and control of the Blythe hub assets in addition to the recently announced pending acquisition of the nearby Vulcan satellites hub. We are making good progress with the Field Development Plan for Blythe and an update will be made in due course.”
Upon completion of the Blythe and Cronx acquisitions IOG will have 100% ownership of five licences in the North Sea.
The Blythe gas discovery in the Rotliegendes Leman formation straddles Blocks 48/22b and 48/23a in the Southern North Sea in licence P1736. The Blythe Leman needs no further appraisal and has independently verified 2P reserves of 34.3 BCF (6.1 MMBoe), according to the firm.
Separately, IOG has agreed to issue 181,818 new ordinary shares in the capital of the Company at a price of 16.5p in lieu of payment to a creditor. IOG has applied to the London Stock Exchange for admission of the New Ordinary Shares to trading on AIM.