SHARES in North Sea-focused Independent Oil & Gas (IOG) have risen twelve per cent after the company struck a low-cost deal directors think will help it progress a key field development project.
The company announced it had agreed to acquire reception facilities at the Bacton gas terminal in Norfolk that it could use to handle output from a group of fields it expects to develop.
Aim market-listed Independent will pay a nominal amount to Perenco, Tullow and Spirit Energy for the reception facilities.
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But chief executive Andrew Hockey said the deal was an important advance for the firm. It should make it easier for Independent to secure the funding required to implement its plan to bring a cluster of gas fields in the Southern North Sea onstream.
The reception facilities will be refurbished with a view to connecting them to the Thames Pipeline that is to be used for transporting output from the fields, and which Independent also acquired for a nominal sum.
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Shares in the firm closed up 1.68P at 15.8p.