RockRose Energy bids for Independent Oil & Gas: in-depth analysis #RRE #IOG
Since I last covered RockRose Energy, it announced a fantastic deal to acquire Marathon Oil’s assets and staff to become an operator. The deal is considered a reverse takeover due to its size which means RockRose will be suspended for the next few months. Given the cost paid and the near doubling of production, RockRose’s shares should re-rate on readmission.
Given the size of that deal, I was surprised to see RockRose had put an offer in for Independent Oil & Gas (IOG) at 20 pence per share which was immediately rejected by IOG’s board of directors.
I took a look at IOG last year for my portfolio. It does have high quality assets:
IOG’s financial position
Unfortunately, IOG is yet to generate any income. It has been funded so far by loans from London Oil & Gas (LOG) which in turn has been funded by London Capital & Finance (LCF).
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