INDEPENDENT Oil & Gas has won more time to complete an acquisition East of Shetland after its expansion plans were thrown into question by the renewed fall in the crude price in recent weeks.
The company said the date for the completion of the Sale and Purchase Agreement concerning a 50 per cent stake in the Skipper discovery it will buy for up to $18 million (£11.5m) has been put back to 7 September.
Independent had planned to complete the agreement around the middle of this month until a firm it expected to provide investment that would help fund the development of Skipper apparently lost interest.
Last Friday the company told investors: “Unexpectedly, the investor has advised us today that due to the renewed fall in commodity prices they have decided not to proceed with the investment at this stage.”
The company had previously said an unidentified international group has proposed to provide an initial $90m debt and equity under a long term financing deal that would provide the resources to bring the Skipper field onstream along with three off England.
The deal would have given the company a stake of up to 29.9 per cent in London-based Independent.
Yesterday Independent said it is actively pursuing alternative funding opportunities.
Chief executive Mark Routh said the company was pleased to have a little more time to close out the Skipper transaction with Alpha Petroleum Resources. He said the extension would optimise the company’s chances of securing the funding required to drill a commitment well on Skipper.
The company’s experience has underlined the challenges smaller North Sea firms face trying to raise the funds needed to develop projects following the sharp fall in the oil price since June last year.
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