London-listed Independent Oil and Gas, which is searching for a associate to assist construct a brand new fuel hub within the southern a part of the North Sea, has rejected a takeover proposal from RockRose Energy.
RockRose, which can be shopping for the UK enterprise of US upstream firm Marathon Oil, stated Tuesday it had proposed a money takeover of IOG on March 1 that will worth IOG at GBP26.6 million ($35 million), a 51% premium to the corporate's share worth, however had been turned down by IOG's board.
RockRose stated the method had constituted a proposal somewhat than formal provide, however the proposal was a “compelling” one and IOG's debt place meant it won’t handle to fund its plans to develop the Vulcan and Blythe space fields by means of a partnership.
RockRose stated IOG ought to present extra data on its debt place, together with whether or not IOG would possibly must convert a few of its debt to further shares.
“RockRose believes that each one IOG shareholders needs to be given the chance to contemplate the deserves of the potential provide,” it stated.
In response, IOG stated it had “promptly rejected” RockRose's “opportunistic” proposal and accused RockRose of creating “deceptive” statements about IOG.
IOG has delayed a ultimate funding choice it had hoped to make within the fourth quarter of final 12 months approving its southern North Sea hub undertaking, for which fuel reserves are estimated at 410 Tcf (11.6 Bcm).
RockRose produced 11,200 b/d of oil equal in December following a succession of acquisitions, and expects to greater than double its manufacturing following completion of Marathon Oil's UK enterprise.
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Commercial fuel output within the UK was 37.9 Bcm in 2018, in accordance with knowledge from S&P Global Platts Analytics, down barely from 38.1 Bcm the 12 months earlier than. UK fuel manufacturing has been declining over the previous decade, though the autumn was stemmed over the previous couple of years by new tasks resembling Total's Laggan-Tormore, Chevron's Alder and Engie's Cygnus.
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