IOG PLC Bondholder discussions (7320H)
31 Julio 2023 - 4:00AM
UK Regulatory
TIDMIOG
RNS Number : 7320H
IOG PLC
31 July 2023
31 July 2023
IOG plc
Bondholder discussions
IOG plc ("IOG", or "the Company"), (AIM: IOG.L) provides a
further progress update on discussions with bondholders and on
production operations.
The existing waiver confirmed on 22 June 2023 postponed the
interest payment due on 20 June 2023 under the EUR100 million
senior secured bond ("Bond") to 31 July 2023, together with certain
other amendments. Since then, the Company has held extensive
discussions with bondholders and their advisors and is now at an
advanced stage of agreeing a further waiver in order to provide an
additional period of stability to address balance sheet challenges.
The Company expects that this waiver will be signed as soon as
practicable.
In the event that the Company does not obtain a further waiver
from bondholders, an event of default under the Bond Terms may
result, which could potentially lead to the Company being put into
administration. The Directors do not believe that this is a likely
outcome and anticipate that the waiver will provide the Company
with a further period of stability. In addition, no plan has yet
been agreed around a longer-term solution, on which a number of
potential options will continue to be discussed with
bondholders.
Operations
-- Blythe H2 gas rate has seen natural decline to approximately
26 mmscf/d currently, with over 95% operating efficiency in July
and no associated water production
-- No change to Blythe remaining reserves estimates (FY2022:
gross 1P / 2P / 3P 24.6 / 42.3 / 46.8 billion cubic feet
equivalent)
-- The Perenco Bacton terminal annual maintenance shutdown is
scheduled for early August and expected to last approximately one
week, which will curtail average production in that month
-- Gas prices have remained relatively weak over the summer,
with realised prices averaging in the 70-75p/therm range in July;
market volatility remains high.
Rupert Newall, CEO, commented:
"We are now at an advanced stage of agreeing a further waiver,
which we expect will be signed as soon as practicable. We continue
to have constructive discussions with bondholders and remain
focused on delivering an outcome in the best interests of all
stakeholders in IOG. We will keep the market advised on further
progress at the appropriate times."
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the company's obligations under Article 17 of MAR.
Enquiries:
IOG plc info@iog.co.uk
Rupert Newall (CEO)
James Chance (Head of Capital Markets & ESG)
Vigo Consulting iog@vigoconsulting.com
Patrick d'Ancona / Finlay Thomson
finnCap Ltd
Christopher Raggett / Simon Hicks
Peel Hunt LLP
Richard Crichton / David McKeown
About IOG:
IOG is a UK developer and producer of indigenous offshore gas.
The Company began producing gas in March 2022 via its offshore and
onshore Saturn Banks production infrastructure. In addition to its
production assets, IOG operates several UK Southern North Sea
licences containing gas discoveries and prospects which, subject to
future investment decisions, may be commercialised through the
Saturn Banks infrastructure. All its assets are co-owned 50:50 with
its joint venture partner CalEnergy Resources (UK) Limited. Further
details of its portfolio can be found at www.iog.co.uk .
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END
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July 31, 2023 05:00 ET (09:00 GMT)
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