UK Minnow Completes Blythe Gas Purchase

Independent Oil and Gas has completed its purchase of the other half of the licence containing the Blythe gas discovery in the UK gas-prone southern basin (SNS), it said June 21. This will trigger a series of field developments following last week's agreement to buy the Vulcan satellites which hinged on the Blythe deal going through.

As previously announced an initial consideration of £1.5mn was payable to the seller Alpha Petroleum on completion with deferred consideration of a further $5mn on first gas.

Blythe requires no further appraisal and this transaction adds a further 17.2bn ft³ or 3mn barrels of oil equivalent to IOG's independently verified 2P reserves, IOG said.

IOG CEO Mark Routh said: "We are delighted to have completed the acquisition of the Blythe gas discovery which immediately doubles our independently verified 2P reserves.”

Mark Routh, CEO, Independent Oil & Gas PLC (image credit IOG)

IOG is in advanced discussions regarding an export route for its SNS gas. Once these offtake arrangements are in place IOG will prepare field development plans. "We are making good progress with the field development plan for Blythe and an update will be made in due course,” he said announcing the Vulcan satellites purchase on June 13.

Separately IOG said it had agreed to issue 181,818 new ordinary shares in the capital of the company at a price of £0.165/each in lieu of payment to a creditor. IOG has applied to the London Stock Exchange for the new ordinary shares to trade on AIM, and trading is expected to start June 27.

William Powell

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