Independent Oil & Gas shares surge on funding update

Shares in Independent Oil & Gas rose more than 20% after the energy company detailed its long term funding strategy.

The company planned to split funding between equity and debt to bring main assets Skipper, Cronx, Elgood and Blythe into production.

An equity component of £7.1m, equating to 29.99% of issued share capital was expected to be issued to an unnamed potential funder on 31 July.

The majority of the funding would be debt from a facility to be completed two months after the above transaction.

Independent Oil & Gas noted the funding was subject to negotiation, of which the equity component should be completed within two weeks.

FinnCap holds a ‘corporate’ rating on the stock which remained unchanged.

Analyst Dougie Youngson said in a note at this point the company would have funding to drill the commitment wells on Skipper and Cronx plus potentially another on another field in the portfolio.