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IOG facility to fund work in North Sea

NORTH Sea focused Independent Oil & Gas (IOG) has seen its share price soar 22.5% after one of its subsidiaries announced a $50 million debt financing facility with an unnamed US backer.

The borrowing, which is for IOG North Sea, has been passed by the lender's credit committee, with full approval expected later this month. Up to $25m will be used to push forward the development of the Blythe field in the North Sea.

IOG is targeting first gas from the field before the end of next year. The remainder of the money will be made available when Blythe is completed or IOG acquires further assets. It is planning to drill two appraisal wells this year.

Mark Routh, chief executive of IOG, said: "We are absolutely delighted to have received credit committee approval for this debt facility on attractive terms. IOG chooses its partners very carefully and we believe that this will be a long-term relationship of mutual benefit."

Shares were up 8p at 43.5p.

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