Completion of Star Energy Group Ltd Acquisition

RNS Number : 0167U

Igas Energy PLC

14 December 2011

 



IGas Energy plc

Completion of Star Energy Group Limited Acquisition

The Board of IGas Energy plc is delighted to announce the completed acquisition of Star Energy Group Limited ("Star Energy") from PETRONAS International Corporation Limited (the "Acquisition") following shareholder approval and the competition of outstanding conditions.

Following this landmark transaction, the IGas Energy Group is now a substantial oil and gas company in the UK.

Highlights of the Acquisition

·      Production

o  More than 2,500boepd in 2011

·      Resources and Reserves

Reserves (mmboe)	1P	2P	3P
(source: Senergy)	6.5	11.1	16.7
Resources	1C	2C	3C
(source: Senergy)	241	312	412
In Place	Low	Medium	High
(source: Equipoise)	904	1,767	4,156

·      Senior technical team with a proven track record of delivering resources

·      158 staff including highly experienced site operators with transferrable skills

·      Own well services division including: 2 work over rigs, 4 hot water flush rigs, 1 hot oil flush rig, and in addition 8 road tanker tractor units

·      Significant oil storage and bunkering including two rail heads

·      Access to joint venture partners rig capacity (33% interest in Larchford Limited and ~50% of Meehan rig JV)

·      Gas Sales Agreement ("GSA") with PETRONAS Energy Trading Limited in which IGas will provide Petronas with its first 150 Bcf of gas at market derived rates

·      1,500boepd of 2012 oil production profile pre-sold at $/bbl 93.4 (net). Overall hedge covers 2.5 mmbbl over 6 years (55% hedged in sterling)

Andrew Austin, CEO of IGas Energy, commented:

"2011 has been a transformational year for our company. Taking full control of our unconventional assets earlier in the year and now the acquisition of Star Energy has consolidated our position as a substantial onshore oil and gas company with an extremely exciting future ahead of us. We now have the combination of assets and capability to deliver significant value on behalf of shareholders"

IGas Energy will provide an operational update to the market in due course  focusing on the performance and integration of the enlarged business.

For further information please contact:  IGas Energy plc  Andrew Austin,CEO	Tel: [phone]
RBS Hoare Govett  Sara Hale / John MacGowan / Jamie Buckland	Tel: [phone]
Kreab Gavin Anderson  Ken Cronin/ Kate Hill/ Anthony Hughes	Tel: [phone]

 

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