Ambitious North Sea operator Independent Oil and Gas is to gear up work on the Blythe gas field development after securing a £30million boost.
The company, which earlier this week bought the Cronx gas prospect near the Blythe site, has agreed a $50million (£29million) borrowing facility with an undisclosed US financial house.
The deal will help drive forward the company’s plans to establish a gas hub in the North Sea at Blythe, with up to half the debt facility available for the development.
“IOG chooses its partners very carefully and we believe that this will be a long term relationship of mutual benefit.
“This is another important milestone in the Blythe field development but also this facility gives us great flexibility with regards to potential acquisitions and other developments such as the nearby Cronx gas discovery,” said chief executive Mark Routh.
“We are working towards submitting the Blythe field development plan by the third quarter of this year, targeting first gas by the end of next year.”
IOG has been looking to develop a production hub around Blythe, in which it has a 50% stake with Alpha Petroleum-owned ATP after landing two licence offers in the 27th offshore round last year.
It has agreed a sales deal with BP for output from the field, which is thought to contain more than 34billion cubic feet of gas.
On Wednesday it announced an initial £500,000 deal to buy the Cronx discovery licence, 14km north-west of Blythe, which could contain another 17billion cubic feet.
The five-year debt arrangement for Blythe is contingent on meeting certain conditions, including securing a hedging agreement and approval of the field development plan.
“Blythe may be the first field development for IOG, but we are also planning to drill appraisal wells on Skipper this summer and on Cronx before the year end,” said Mr Routh.
“We are actively reviewing other potential acquisitions and developments, including applications in the current 28th Licensing Round.”
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