North Sea oil and gas company IOG (LON: IOG) says it believes that it is near to a further waiver of the interest payment on the €100m senior secured bond. This is required because IOG could go into administration if there is a default on the bond.
Shareholders remain jittery and the share price has slumped by one-quarter to 2.125p. That is an all-time low.
AIM-quoted IOG originally announced a delay of the payment due on 20 June to 31 July. Talks are at an advanced stage to extend the payment date again, so that the company can put in place a way of coping with its stretched balance sheet.
Gas prices remain weak while the Blythe H2 gas rate has declined to 26mmscf/day. finnCap forecasts a slump in revenues from £75.4m to £26.7m, which would push IOG into loss. Net debt of £96.5m is forecast for the end of 2023 with cash falling to £1m, compared with £20.3m at the end of June 2023. That indicates the working capital concerns.