UK company sees steep losses at market opening

UK company Independent Oil & Gas lost £4.4 million after an unnamed backer decided to pull out on planned investments due to low international oil prices. The company made the announcement after the markets closed on Friday. The loss represents Independent’s steepest one-day drop in the last two years, with shares falling more than 50 pence.

“The decision from our potential investor is unexpected based on the progress made to date and clearly very disappointing. It is a decision based on external factors and not a reflection on our team and assets,” Mark Routh, chief executive officer of Independent Oil & Gas, is reported as saying by The Telegraph.

Independent’s shareholders approved the deal in July, and had the deal gone through, the company would have seen $10 million in investments.

“We have continued to keep other opportunities open. We are now pursuing these opportunities with the aim of maximising value to shareholders,” Routh said.

The company is seeking funding for a licence extension for its Skipper well, located in the North Sea. It also plans to buy out private upstream company Alpha Petroleum in the licence.

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