A NORTH Sea oil firm that won backing from US billionaire Warren Buffett saw its shares jump after an upbeat investor update.
Independent Oil & Gas (IOG) shares surged by more than nine per cent in early trading as it posted that first half progress has set it up for a “cash generative” second half, based on average prices to date and expected prices in winter.
The company said its “resilience measures on Blythe and Elgood are starting to bear fruit”. It started production in March, following the start of the Russian invasion of Ukraine.
Andrew Hockey, IOG chief executive, told investors it is “very pleased” to exit the half year with Saturn Banks producing double the level of one month ago, adding: “Our resilience measures on Blythe and Elgood are starting to bear fruit, with 93% uptime in June.”
It said both Southwark East and Southwark West wells are to be targeted for first gas in the fourth quarter.
READ MORE: North Sea firm to bring new gas field into production amid Ukraine war fall-out
“This will be followed directly by two exciting appraisal wells at Goddard and Kelham targeting further growth opportunities,” said Mr Hockey. IOG shares closed at 31.25p, up 7.76%.
The news comes as Scottish tidal energy pioneer Orbital has hailed a “significant operational funding milestone” after attracting £4 million of investment from Scottish National Investment Bank and a further £4m from thousands of individual investors to support the development of its 2MW-plus floating turbine.
The Orkney based firm plans to service these debts from money raised via the long-term sale of electricity generated by its O2 tidal turbine device.
Mark Munro, SNIB executive director, said: “The bank’s investment in Orbital aligns with our mission to support homegrown innovation and the just energy transition.
“The company’s unique and scalable approach to tidal stream energy has an important role to play in the journey towards net zero, and its focus on a domestic supply chain and strong Orkney heritage also has significant potential to benefit Scotland more broadly.”
READ MORE: World’s most powerful tidal turbine starts exporting power
Bruce Davis, of Abundance Investment, which is contributing the other £4m, said: “Our investors are proud to have mobilised their money to support Orbital Marine Power in their quest to make tidal stream energy a key pillar of the UK energy sustainability and security.
“From its origins as a world-beating, record crowdfunding investment we look forward to helping to finance a future world-beating industry.”
Meanwhile, Fraser Well Management, which has offices in Aberdeen, Great Yarmouth and Rotterdam, has been acquired by global oil and gas services company THREE60 Energy.
All of Fraser Well Management’s personnel will transfer and its three offices will remain in operation.
Walter Thain, of THREE60 Energy, said: “The capabilities and expertise that Fraser Well Management has accumulated will greatly benefit the integrated solutions we offer our customers throughout the asset life cycle.
"As we continue to transition into sustainable and renewable energies alongside traditional means of energy production and storage, there has never been a more pertinent time to invest in the future of our business and our place in the energy supply chain.”
Nick Ford, managing director at Fraser Well Management said: “This deal is a natural progression for our services and people.”
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