Independent Oil &Gas (IOG.L) Announcement Re: Possible Offer for Deltic Energy

Further to its 11 September 2020 announcement in relation to a possible all-share offer for the entire issued and to be issued share capital of Deltic Energy plc (“Deltic”), Independent Oil and Gas plc (“IOG” or “the Company”) confirms it does not intend to make an offer under Rule 2.7 of the City Code on Takeovers and Mergers (the “Code”) to acquire Deltic due to the absence of Deltic Board engagement both on an initial approach made on 26 August (which was rejected on 2 September) as well as on a second approach made on 25 September on improved terms which was rejected on 2 October.

IOG believes that, at the right level, a transaction would have considerable industrial logic, consolidating and scaling up two complementary portfolios with a balance of near-term catalysts and longer-term upside, representing excellent value for both sets of shareholders. However, the Board of IOG is clear that it will remain disciplined in its approach to consolidation opportunities and will not pay over risked fair value for assets, not least given the quality of its own existing portfolio and near-term development opportunities.

IOG remains as firmly focused as ever on safe and efficient execution of its Phase 1 development, which continues to progress on track for first gas in Q3 2021, as well as generating substantial additional shareholder value from the extensive growth opportunities within its existing Southern North Sea gas portfolio, including several further proven gas discoveries, multiple nearby potential incremental investment assets and two further synergistic gas discoveries in the recently released 32nd Round licence offers.

This is a statement to which Rule 2.8 of the Code applies.

For the purposes of Rule 2.8 of the Code, IOG reserves the right to make or participate in an offer or possible offer for Deltic (and/or take any other action which would otherwise be restricted under Rule 2.8 of the Code) within 6 months following the date of this announcement:

i) with the agreement of the Board of Directors of Deltic;

ii) following the announcement of a firm intention to make an offer for Deltic by or on behalf of a third party;

iii) following the announcement by Deltic of a proposal for a “whitewash” (as referred to in Note 1 of the Notes on Dispensations from Rule 9 of the Code) or for a reverse takeover (as defined in the Code); or

iv) where the Panel on Takeovers and Mergers has determined that there has been a material change of circumstances.

Other notices

Peel Hunt LLP (“Peel Hunt”), which is authorised and regulated by the Financial Conduct Authority in the UK, is acting exclusively for IOG and no one else in connection with the matters described in this announcement and will not be responsible to anyone other than IOG for providing the protections afforded to clients of Peel Hunt nor for providing advice in connection with the matters referred to herein. Neither Peel Hunt nor any of its subsidiaries, branches or affiliates owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of Peel Hunt in connection with this announcement, any statement contained herein or otherwise.

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