Independent Oil & Gas
Full steam ahead for IOG this morning as they bring forward the process for delivery of the Core Project, phase 1 contracts are being retendered and will be awarded shortly after FID, expected next month. First gas is expected in July 2021 from the Southwark field but the company is confident enough to bring forward the drilling programme so that Elgood comes earlier and will then come onstream with Blythe. Whilst this involves higher initial capex it means that these fields will come onstream over winter 2021 which should more than offset the risk given higher prices in the winter.
Whether it is the increased capex and the unexpected earlier costs as described above or a reluctance to raise any equity in the funding process, the proposed amount of the bond issue goes up from £70m to £88m and the marketing process starts this week. The next few weeks with this and the Farm-out completion preceding the FID makes it an important time for IOG.