Independent Oil & Gas shares plummet after funder backs out

Independent Oil & Gas shares took a hit after the company said an unknown backer pulled out of a $10m funding arrangement.

At 1531 BST shares in the AIM listed stock were down by 46.1% to 6.33p.

IOG had signed a letter of intent with the listed company for $10m equity investment at 23.79p and a first tranche of debt of $80m with contingency for a further £400m.

The company got cold feet due following the renewed fall in commodity prices, IOG said.

IOG said it had confidence in the transaction but had kept other alternatives open, which it was now pursuing.

"The decision from our potential investor is unexpected based on the progress made to date and clearly very disappointing,” chief executive Mark Routh said.