NORTH Sea-focused Independent Oil & Gas has highlighted the opportunities there are for small firms to prosper in the area after the company made progress amid challenging conditions in recent months.
The London-based company said long term financing discussions on the funding of four fields through to production, including Blythe, are progressing well.
Independent said the talks are with an internationally listed group with a multi-billion dollar valuation which it did not identify. All parties continue to work towards a completion date by August 15.
The comments suggest some international investors are still planning to put money into the North Sea in spite of the fall in the oil price since June last year.
In its 2014 accounts, published yesterday, Independent notes there can be no guarantee it will secure the financing it is discussing with the large listed group.
"These conditions indicate the existence of a material uncertainty which may cast significant doubt about the Group's ability to continue as a going concern," noted the company.
But Independent's chief executive, Mark Routh, said the firm aims to be producing 20,000 barrels oil equivalent daily by 2018. It is considering buying producing assets to help speed growth.
Directors believe the retreat of the majors from the North Sea will create opportunities for firms such as Independent to make money by developing assets bigger fish will not invest in.
Independent is targeting first gas from Blythe off eastern England in the second quarter of 2017.
However, it lost £12m in 2014 after providing £8.3m against the value of North Sea assets.
Separately, another North Sea specialist, Iona Energy, said it has received support from a significant number of bond-holders for a refinancing plan that will involve a debt for equity swap.
The company said the proposed refinancing of $275m (£175m) bonds is intended to ensure it is fully funded to develop the Orlando field in the North Sea, which it aims to bring onstream in 2016.
Iona said the proposed refinancing is subject to the approval of a two thirds majority of bondholders attending a meeting which is expected in July/August.
The company lost $120m in 2014. It provided $89m against the value of the Huntington field in the North Sea to reflect the crude price drop.
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