IOG plc provides a further progress update on discussions with bondholders and on production operations.

The existing waiver confirmed on 22 June 2023 postponed the interest payment due on 20 June 2023 under the €100 million senior secured bond to 31 July 2023, together with certain other amendments. Since then, the Company has held extensive discussions with bondholders and their advisors and is now at an advanced stage of agreeing a further waiver in order to provide an additional period of stability to address balance sheet challenges. The Company expects that this waiver will be signed as soon as practicable.

In the event that the Company does not obtain a further waiver from bondholders, an event of default under the Bond Terms may result, which could potentially lead to the Company being put into administration. The Directors do not believe that this is a likely outcome and anticipate that the waiver will provide the Company with a further period of stability. In addition, no plan has yet been agreed around a longer-term solution, on which a number of potential options will continue to be discussed with bondholders.

Operations

• Blythe H2 gas rate has seen natural decline to approximately 26 mmscf/d currently, with over 95% operating efficiency in July and no associated water production
• No change to Blythe remaining reserves estimates (FY2022: gross 1P / 2P / 3P 24.6 / 42.3 / 46.8 billion cubic feet equivalent)
• The Perenco Bacton terminal annual maintenance shutdown is scheduled for early August and expected to last approximately one week, which will curtail average production in that month
• Gas prices have remained relatively weak over the summer, with realised prices averaging in the 70-75p/therm range in July; market volatility remains high.  

Rupert Newall, CEO, commented:
"We are now at an advanced stage of agreeing a further waiver, which we expect will be signed as soon as practicable. We continue to have constructive discussions with bondholders and remain focused on delivering an outcome in the best interests of all stakeholders in IOG. We will keep the market advised on further progress at the appropriate times."

KeyFacts Energy: IOG UK country profile