UK explorer Independent Oil and Gas (IOG) has completed the acquisition of 100% of the shares of Oyster Petroleum, a subsidiary of Verus Petroleum.
Oyster holds southern North Sea licenses containing the Vulcan East, Vulcan North West and Vulcan South fields, collectively the Vulcan Satellites.
The deal was for an initial consideration of £1 million, with a further £0.75 million payable nine months after completion and then further payments of up to £3.25 million on the achievement of certain milestones.
The move increases IOG's 2C recoverable resources by 320.7 Bcf or 53.45 MMboe. The Vulcan Satellites require no further appraisal and IOG is progressing exclusive discussions regarding an export route for its SNS gas hubs.
The firm says it will now be able to build on the current preliminary field development plan, with a view to submitting a final plan it next year.
IOG's CEO Mark Routh said: "The acquisition is a very good fit for IOG alongside our Blythe hub and is a vital step forward in IOG’s plan to become a significant operator in the Southern North Sea. We are confident the acquisition will help us deliver our strategy of developing existing discoveries through common infrastructure and capturing valuable synergies."
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