AGM Statement

RNS Number : 0831X

Igas Energy PLC

26 August 2015

 

26 August 2015

IGas Energy PLC (AIM :IGAS)

("IGas" or "the Company")

AGM Statement

At the Annual General Meeting to be held today Francis Gugen, Chairman, will make the following statement:

"We have continued to make progress across the business since we reported our full year results at the end of June, in spite of the ongoing oil price volatility.

I am pleased to announce that today we have appointed Julian Tedder as Chief Financial Officer, with effect from the end of September.  Julian brings a wealth of experience from his previous roles, most recently as General Manager, Finance at Tullow Oil and we look forward to welcoming him to the Board.

Our cost reduction programme is now complete and we are already benefiting, with operating costs of c.US$32 per barrel, excluding reorganisation costs, in the first four months of the financial period.  We still anticipate net operating costs and S,G&A charges to be below $40/bbl, excluding reorganisation costs, for the year. As at 31 July 2015, we had cash and cash equivalents of approximately £43m (US$67m) and net debt was approximately £62m (US$96m).  We continue to actively manage the hedging of our production to protect cash flows and currently have 625,000 barrels hedged in the period to 30 September 2016 at an average price of c.US$63.5 per barrel.

Production is currently running at approximately 2,550 boepd with production for the year to 31 March 2016 anticipated to be c.2,700 boepd, which includes the anticipated incremental production from our programme of sidetracks in the Weald Basin, scheduled to commence in Q3.

Our gas monetisation projects are progressing having submitted a planning application for our gas to wire project at Bletchingley and an application for compressed natural gas at Albury is imminent. At Lybster, in Scotland, we are in discussions with a number of partners to evaluate the off-take options. 

Earlier this month, amendments to the bond terms were approved with close to 100% support from holders. These amendments align IGas' reporting periods, budgeting and planning cycles with its partners, as well as provide the flexibility in the current oil price environment to manage its operations successfully going forward.

We are progressing our five year shale development plan, which we set out at the full year results, in conjunction with our partners.  In the near term, we are moving ahead with our planning application for two wells at the Springs Road site in the East Midlands.  Across the Pennines, in the North West, we are undertaking a 3D seismic survey that will give us essential data to further inform near term site selection. 

Last week we were offered a total of 6 new licences, covering 7 blocks, in the first group of licences awarded in the UK's 14^th Onshore Oil and Gas Licensing round. These licences, some of which are with our existing partners Total and Egdon, are located in the Gainsborough Trough, predominantly in the East Midlands and South Yorkshire and include exploration prospects for both shale gas and conventional oil and gas, close to our existing operations. We have also applied for a number of additional licences and note that the remaining 14th round awards are expected to be made later in the year, after the conclusion of a consultation under the Conservation of Habitats and Species Regulations 2010.

We have also recently welcomed clarity by Government as to the planning and appeal process timetable for applications for onshore oil and gas developments with shale development to be treated as a national priority."

For further information please contact:

IGas Energy plc

Tel: [phone]

Stephen Bowler, Chief Executive Officer

Ann-marie Wilkinson, Director of Corporate Affairs

Jefferies International Limited (NOMAD and Joint Corporate Broker)

Tel: [phone]

Graham Hertrich/Jason Grossman

Canaccord Genuity (Joint Corporate Broker)

Tel: [phone]

Henry Fitzgerald-O'Connor

Vigo Communications

Tel: [phone]

Patrick D'Ancona/Chris McMahon

 

END

 

 

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