Independent Oil and Gas (IOG) said it has completed the acquisition of 100% of the shares of Oyster Petroleum Limited.
The subsidiary of Verus Petroleum holds the Southern North Sea licences containing the Vulcan East, Vulcan North West and Vulcan South fields, known as the Vulcan Satellites.
The company said the details of the acquisition have remained unchanged since an announcement was first made in June this year.
There is an initial consideration of £1million, which was funded by drawing down on the company’s available loan facilties.
There is £0.75million payable after nine months following completion of the deal and then a further payment of up to £3.25million upon the achievement of certain milestones.
Mark Routh, chief exeuctive of IOG, said:”We are very pleased to have completed the acquisition of these sizeable and attractive assets in the UK Southern North Sea, more than doubling our 2P+2C recoverable resources at a compelling price of $0.22/Boe. The acquisition is a very good fit for IOG alongside our Blythe hub and is a vital step forward in IOG’s plan to become a significant operator in the Southern North Sea.
“We are confident the acquisition will help us deliver our strategy of developing existing discoveries through common infrastructure and capturing valuable synergies. I look forward to updating shareholders on field developments plans in the near future.”
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