Independent Oil and Gas has agreed an additional £800,000 loan from London Oil & Gas, adding to the £2.75million it has already provided to fund the Skipper appraisal well.
The loan will provide additional funds to be invested in the company’s gas assets in the Southern North Sea, allow for additional contingency for the upcoming appraisal well, and provide for general corporate needs.
London Oil & Gas last week agreed to lend the company £2.75million of a total £4.75million debt financing. GE Oil and Gas is providing the remaining £2million.
IOG anticipates granting London Oil and Gas a fixed and floating charge over the company and the assets of IOG North Sea as security for repayment of the additional Loan.
Chief executive Mark Routh, said: “We are pleased to have agreed this additional loan from London Oil & Gas.
“It will enable us to further de-risk and add value to IOG’s Southern North Sea asset portfolio.
“It will also fund corporate needs for 2016 and provide an extra layer of contingency for the fully funded Skipper appraisal well.”