Independent Oil and Gas (LON:IOG) chief executive Mark Routh told investors that considerable progress had been made in the first half of 2014.
He highlights, in the group’s interim results statement, that IOG expanded its asset base with the pending acquisition of the Cronx field and the award of new acreage east of the company’s Blythe field.
Both additions enhance the group’s planned hub development built around Blythe.
More recently IOG’s plans have moved forward again with the hiring of a project manager, in the form of oil services firm AGR, and a separate agreement with an Asian firm called Ping Petroleum with which the company will look to jointly acquire producing assets.
Another agreement, this time with the gas marketing arm of BP, will support the Cronx acquisition by providing a £3mln bridging loan.
It is expected that the Cronx acquisition will complete in the fourth quarter of the year.
Earlier in the year the resolution of uncertainties regarding Alpha Petroleum, IOG’s partner for Blythe, was another important milestone.
“We can look forward to a number of value driving events in the months ahead which will increase our reserve base and move our projects closer to production,” Routh said.
“Post period end, we consider the loan anticipated by the term sheet with BP Gas Marketing Ltd to be a validation of the IOG team and its portfolio of assets including the pending acquisition of the Cronx asset and the loan would be used to part fund the drilling of the Cronx commitment well next year."