Result of General Meeting

RNS Number : 3808C

Igas Energy PLC

04 March 2011

 



4^th March 2011

IGas Energy plc

('IGas' or the 'Company')

Result of General Meeting and update on timing for the Completion of the Placing and the Acquisition

The Board of IGas is pleased to announce that the ordinary and special resolutions to approve the allotment of 39,714,290 shares (the "Consideration Shares") to Nexen Petroleum UK Limited announced on 31 January 2011 and the Placing of 27,500,00 shares (the "Placing Shares") announced on 11 February 2011, (together the "Resolutions") were passed at a General Meeting of the Company today in London.  

The full text of each of the Resolutions was included in the notice of the General Meeting circulated to shareholders on 14 February 2011.  Details of the proxy votes for each of the Resolutions received by the Company before the General Meeting are now available on the Company's website.

The announcement on 31 January 2011, explained that the Placing was conditional upon the acquisition of Nexen Exploration UK Limited (the "Acquisition") becoming unconditional in all respects. The completion of the Acquisition is subject to a number of conditions. These included DECC approval of the change of control of Nexen Exploration UK Limited and the passing of the Resolutions, which are now satisfied.

However it is also a condition to the Acquisition that Nexen Petroleum UK Limited would procure that Nexen Exploration UK Limited divested itself of certain assets (being primarily an exploration licence not forming part of the original joint operations) prior to the Acquisition completing.

This pre-completion disposal has received DECC consent and signatures from the relevant third parties to effect this are in the process of being collected. It is important, for tax reasons, that this pre-completion disposal completes ahead of IGas obtaining control of Nexen Exploration UK Limited.

Completion of the Acquisition, and accordingly also the Placing, is now scheduled for Wednesday 9 March 2011. This delay means that the Consideration Shares and the Placing Shares will be allotted on Wednesday 9 March 2011 and that application for those shares to be admitted to trading on AIM will be made on the same date. Accordingly it is now expected that dealings in the Consideration Shares and the placing Shares will commence on 10 March 2011.

Ends

For further information please contact:

IGas Energy Plc	Tel: [phone]
Andrew  Austin, Chief Executive Officer
RBS Hoare Govett	Tel: [phone]
Stephen Bowler/ John MacGowan
Kreab Gavin Anderson	Tel: [phone]
Ken Cronin/ Kate Hill/ Anthony Hughes

NOTES TO THE EDITOR

IGas was set up to produce and market domestic sourced gas, primarily from unconventional reservoirs, particularly coal bed methane. IGas is now producing gas from its pilot production site at Doe Green in Warrington and selling electricity through its on-site generation, a UK first from CBM. Initial production rates indicate that the Company should exceed its threshold for commerciality.

Following the completion of the Nexen Exploration UK transaction, IGas will have 100 per cent ownership interests in eleven PEDLs in the UK, wholly own two methane drainage licences and have a 100 per cent interest in three offshore blocks under one seaward petroleum production licence. These licenses cover a gross area of approximately 1,756 km2. The post Acquisition mid case GIIP is 9,107Bcf (source: Equipoise Solutions Ltd), excluding any shale potential.

The coal seam both generates and traps the gas, which can be extracted by drilling into the seam and collected for use as fuel. CBM is exactly the same as other forms of natural gas, and is used to provide both industrial and domestic power and has the potential to be an important new source of energy for the UK.

Glossary

The following definitions apply throughout this announcement, unless the context requires otherwise 

Bcf	billions of standard cubic feet of gas
boe	barrel of oil equivalent
CBM	coal bed methane
CPR	competent person report
DECC	The Department for Energy and Climate Change
FDP	field development programme
GIIP	gas initially in place
PEDL	Petroleum Exploration and Development Licence
Tcf	trillions of standard cubic feet of gas

 

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