The Oil and Gas Authority (OGA) has extended Independent Oil and Gas’ (IOG) North Sea licences as the firm looks to find more cash.
North Sea focused IOG is trying to agree a contractor led funding approach to drill its Skipper appraisal well.
OGA has since extended IOG’s Skipper licence until December this year, buying the firm more time.
OGA also postponed IOG’s Blythe licence deadline until December next year. Under the terms, IOG must submit a draft field development plan to the OGA by December this year.
A company spokesman added: “IOG aims to drill the Skipper well as 100% owner, which requires completion of the Sale and Purchase agreement to acquire 50% of the licence from Alpha Petroleum Ltd (“Alpha”). Alpha has agreed to extend the deadline for completion of the acquisition by one month to 7th October 2015.”
The firm has also had its Darwin loan extended until October. The firm must then pay £358,000.
Chief executive Mark Routh said: “This remains a challenging time to fund and drill wells in the North Sea, but we are very pleased with the support we have had from the OGA in extending both licences and from the contractor community to help us get the exciting Skipper well drilled. We are also appreciative of Darwin’s flexibility in extending the loan without any levy of fees or interest.
“I look forward to providing further updates on our progress in due course.”
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