Independent Oil and Gas plc (“IOG” or “the Company”), (AIM: IOG.L), the development and production company focused on becoming a substantial UK gas producer, notes that the Financial Conduct Authority is conducting an investigation into the affairs of London Capital and Finance plc (“LCF”) and that the FCA has required that LCF may not (without the prior consent of the FCA) deal in any way with its assets and must cease conducting all regulated activity. There is no direct relationship between LCF and IOG.
IOG wishes to clarify that LCF is not a shareholder in IOG’s primary financial backer, London Oil & Gas plc (“LOG”). LOG is a borrower from LCF and LOG is also a lender to IOG amongst other companies.
Under the total of £38.55m loan facility agreements signed between IOG and LOG between December 2015 and September 2018 (the “LOG Facilities”), sums owed by IOG to LOG are only repayable within 36 months of their drawdown and there is no mechanism under which LOG can demand early repayment save in an event of default by the Company.
The Company has to date drawn a total of £30.7m under the LOG Facilities of which £0.7m is held in cash and £3.05m is due to be repaid in the next six months.
The Company currently has further availability under the LOG Facilities of £7.85m. LOG has today re-confirmed to IOG that all sums agreed to be lent to IOG remain available to the Company and LOG has not received any call on any of its funds from LCF.
The Company is monitoring the situation with regard to LCF and LOG carefully and continues to progress its current forward funding plans as per its 29 November 2018 announcement.
The FCA is conducting an investigation into the affairs of London Capital & Finance Plc (LCF)
