Acquisition of complementary onshore fields

RNS Number : 3902N

Igas Energy PLC

28 September 2012

 



28 September 2012

IGas Energy plc ("IGas")

Acquisition of complementary onshore fields

The Board of IGas is pleased to announce the signing of a heads of terms agreement for the acquisition of P.R. Singleton Limited ("PR Singleton") from Providence Resource P.l.c ("Providence") (the "Acquisition") for US$66m (c.£41m).

On completion, IGas will own 100% of PL240, including the Singleton field which is close to existing IGas assets in the South of England, and 50% of PEDL 233 including the Baxter's Copse and Burton Down fields. Current production from the Singleton field is 530bopd (700boepd).

Key Highlights

·     Purchase consideration of US$66m

·     Singleton's oil assets have been estimated by Netherland, Sewell & Associates, Inc. (an independent reserves assessor) for PR Singleton, as at 30 June 2012, to be as follows:

o  3.9mmbbl of 1P reserves - NPV10 US$127m

§ Proved developed producing reserves NPV10 US$64m

§ Proved underdeveloped reserves NPV10 US$63m

o  5.3mmbbl of 2P reserves - NPV10 US$157m

o  Estimated production of 485bopd in calendar year 2013

·     Baxter's Copse assets are estimated by RPS Energy, as at 1 July 2009, to be 2.7mboe net

·     c.US$25mm of tax losses within PR Singleton on completion

·     The consideration will be funded by debt. IGas is currently in advanced discussions with potential lenders

The Acquisition, expected to be completed by the end of the year, is conditional upon the conclusion of debt financing and obtaining certain regulatory approvals.

Andrew Austin, CEO of IGas Energy, commented:

"The Singleton field lies between our existing Storrington and Horndean fields in the Weald Basin. We currently sell all the oil produced at Singleton field on behalf of Providence and have a very good understanding of the field given its history.  We see considerable upside from the field alongside the additional resources in Baxter's Copse."

For further information please contact:

IGas Energy plc, Andrew Austin,CEO Stephen Bowler, CFO	Tel: [phone]
Jefferies Hoare Govett Sara Hale / Jamie Buckland / Graham Hertrich	Tel: [phone]
Canacord Genuity Rob Collins / Tim Redfern	Tel: [phone]
Kreab Gavin Anderson Ken Cronin/ Kate Hill/ Anthony Hughes	Tel: [phone]

 

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