A North Sea-focused energy company saw its share price spike yesterday after revealing it had raised enough money in a share placement to meet a loan repayment in September.
The share price of Independent Oil and Gas (IOG) rose 14% yesterday as it confirmed it was still in talks with an “internationally listed group, with a multi-billion dollar market capitalisation” for a longer-term funding solution.
The AIM-listed firm said the £145,000 raised through the share placement made it “adequately funded” until September 4 – the deadline for a final repayment of £358,155 to specialist lender, Darwin Strategic.
Darwin, part owned by Henderson Investors and Investec, specialises in offering unusual “self-directed equity issuance structures” for companies listed on the junior market.
IOG said it had instructed Darwin to sell 1.47mln shares at a premium price in order to partially repay a loan and also provide two months of additional working capital.
IOG also said long-term discussions on the funding of its Skipper, Cronx, Elgood and Blythe assets through to production were progressing well and was on track to complete August 15.
Chief executive Mark Routh said: “We are delighted to have secured further short-term funding providing stability for the company while we progress our long-term funding discussions and projects.”
Mr Routh was joint managing director at CH4 Energy at the time it was sold to Venture Production in 2006 for £153million before founding IOG in 2011.
Earlier this month, IOG bought out its partner in one of its fields, Skipper. Alpha Petroleum Resources, formerly known as ATP, was a joint partner in the field and was snapped up last December by Petroleum Equity after the firm’s parent company in the US filed for bankruptcy protection.
The company will publish its annual report and accounts on June 30.
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