UK RockRose Drops IOG Bid

UK explorer RockRose has dropped its attempt to buy Independent Oil & Gas (IOG)'s debt to London Capital Finance (LCF), which is now in administration, it said April 1. It has also dropped its bid for the outstanding shares of IOG in light of opposition from IOG despite IOG's 100% dilutive fundraise at half RockRose's possible (and rejected) price of £0.20/IOG share.

RockRose said it would be highly difficult to manage IOG's business without the support from the senior lender of the IOG debt although debt recovery "by the administrators and the LCF mini bondholders will be materially delayed, restricted and subject to a high degree of uncertainty."

It concluded that it "fails to understand how the proposed fundraise, alteration of debt terms and the rejection of the possible IOG share offer and firm IOG debt offer are in the best interests of the IOG shareholders and LCF mini bond holders, respectively."

Under stock exchange rules it had until tomorrow to announce formally its decision to pursue IOG or not; under a limited number of circumstances it can make another offer. But with the distraction of a takeover out of the way for now, IOG can now focus on its sanction-ready Harvey well in the UK southern North Sea and the selection of a farm-out partner for what it hopes will be its first source of cashflow from gas production.