Independent Oil and Gas (IOG) has scrapped together enough funding to see it through to the end of the September.
The North Sea focused firm also confirmed its bid to secure a long term financing deal was closing in on completion.
Earlier this year, IOG set out on a fundraising drive to bring the company’s main assets Skipper, Cronx, Elgood and Blythe into production.
Completion of the acquisitions of Cronx and 50% of Skipper are also contingent on the long term financing being secured and rig contracts being agreed.
A spokesman said: “The long term financing is expected to be split between equity and debt with the significant majority being debt. The Potential Funder is expected to subscribe for up to 30,012,610 ordinary shares of 1p each equating to gross proceeds of approximately £7.1million in cash for an equity stake of up to 29.9% of the issued share capital of the Company at the AIM Admission price of 23.79p. It is anticipated that this equity subscription will complete by 31 July 2015.”
The deal will now be sent for final approval with various counter-parties.
A spokesman added: “IOG is in discussions regarding a contract for a semi-submersible drilling rig to drill the Skipper commitment well which is expected to be drilled in mid-2016. The Potential Funder is also expected to provide financial support to the rig owner prior to 15 August 2015. The Directors believe that the combination of this financial support and the equity investment should be sufficient for IOG to demonstrate adequate funding to the Oil and Gas Authority and also to allow the Company to complete the Skipper acquisition by the agreed long stop date of 15 August 2015.”
IOG aims to fully convert negotiations within the next two weeks.
Meanwhile, IOG struck a deal with a third party which subscribed for 609,500 shares at a price of 23.79p. The move has secured its finances through September.
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