AGM Trading Update

RNS Number : 1964Z

Igas Energy PLC

25 May 2016

 

25 May 2016

IGas Energy PLC (AIM : IGAS)

("IGas" or "the Company")

AGM Trading Update

IGas today provides the following statement in relation to trading for the period 1 January to 24 May. This update is issued in advance of the Company's Annual General Meeting which is being held at 10.30am today.

 Highlights:

·     Production and existing assets

o  Production remains stable with guidance for the full year remaining between 2,500 - 2,700  boepd

o  Gas monetisation projects progressing: Bletchingley planning permission granted

o  Planning applications submitted to the South Down's National Park Authority for two new wells  to be drilled from our Singleton site to new target locations and the installation of CNG  equipment to monetise gas production

·     Five Year Shale Development Plan

o  Springs Road (PEDL 140) application progresses with final determination expected in the third  quarter of 2016

o  Tinker Lane (PEDL 200) application submitted to Nottinghamshire County Council in May 2016

o  North West 3D seismic preliminary interpretation concluded; ecological surveys underway ahead  of site selection and preparation of applications for flow tests

·     Financial

o  Operating costs for 2016 expected to be $30/boe

o  Cash of £22.5 million as at 30 April 2016

o  Capital expenditure guidance of $10m for 2016

o  405,000 barrels hedged to June 2017 at a floor price of $50.25/bbl as at 30 April 2016

·     Industry update

o  Third Energy planning application approved to hydraulically fracture the existing KM8 well at  Kirby Misperton, Yorkshire, to evaluate the potential of the shale resource

o  The Planning Inspector conducting the Cuadrilla appeal will be submitting her report and  recommendation to the Secretary of State for Communities and Local Government by 4 July  2016 

o  Earlier this month, Cuadrilla notified Lancashire County Council of its intention to exercise the  company's right to a permitted development for water monitoring at Preston New Road under  the Infrastructure Act Secondary Legislation amendments 

Commenting Stephen Bowler, CEO, said

"The first few months of the year have been busy across the business.  We continue to identify projects to enhance production and utilise our stranded gas.  Progress continues against our five year shale development plan and, subject to planning and permitting, we expect to spud two carried wells in the first half of 2017.  In parallel to the 3D seismic interpretation, we are progressing further applications that will seek consents to flow test shale wells.

We were delighted that Third Energy were granted planning permission to hydraulically fracture their existing KM8 well and welcome the decision taken by North Yorkshire County Councillors in their careful consideration of the facts and the recognition that this established onshore industry can carry out its operations safely and environmentally responsibly.  There is a pressing need to deliver lower carbon energy that is home grown, provides important energy security for the future alongside economic benefits to the local communities as well as the country as a whole.

In this period of prolonged oil price volatility we remain focused on balance sheet strength, operating efficiencies and preserving cash, whilst continuing to deliver value adding activity."

John Blaymires, Chief Operating Officer of IGas Energy plc, and a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, June 2009, of the London Stock Exchange, has reviewed and approved the technical information contained in this announcement. Mr. Blaymires has more than 30 years' oil and gas exploration and production experience.

For further information please contact:

IGas Energy plc                                                                                                                                  Tel: [phone]

Stephen Bowler, Chief Executive Officer

Julian Tedder, Chief Financial Officer

Ann-marie Wilkinson, Director of Corporate Affairs

Jefferies International Limited (NOMAD and Joint Corporate Broker)                       Tel: [phone]

Graham Hertrich/Jason Grossman/Simon Hardy

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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