Independent Oil and Gas plc (LON:IOG) issued a statement regarding its loan facilities and its financing partner London Oil & Gas plc (LOG) as UK regulator the Financial Conduct Authority conducts an investigation into the affairs of London Capital and Finance plc (LCF).
The FCA has ordered that LCF may not deal in any way with its assets and must cease conducting all regulated activity, without prior consent from the FCA.
In a stock market statement, IOG said it wished to clarify that it had no direct relationship between LCF and IOG.
The North Sea hydrocarbons firm said that LCF is not a shareholder in LOG, but, it is a lender to LOG which is, in turn, a lender to IOG.
IOG added that the £38.55m loan facility (under which some £30.7mln has been drawn) doesn’t allow LOG any mechanism to demand early repayment and it is only repayable within 36 months of drawdown.
Some £3.05mln is due to be repaid to LOG in the next six months, the IOG noted.
“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,” it said in a statement.
“The company is monitoring the situation with regard to LCF and LOG carefully and continues to progress its current forward funding plans.”