Shale Gas In Place

RNS Number : 0799G

Igas Energy PLC

03 June 2013

 



3 June 2013

Shale Gas in place in IGas' North West licences of up to ca.170Tcf

IGas, one of the leading producers of onshore hydrocarbons in the UK, is pleased to announce the results of its studies of the Lower Carboniferous shale, including the Bowland Shale, under its 100% owned licences in the North West of England, an area of 300 square miles.

IGas has constructed a geological model utilising 330 kms of reprocessed seismic lines, subsurface data (including cores, logs) from ca. 20 offset wells and geological data from IGas's well at Ince Marshes. This data has been analysed to give estimates of the reservoir characteristics of the shale formations and the thickness of the shale.

Based on this model, IGas has estimated the volume of Gas Initially In Place ("GIIP") associated with the Shales in the North West, including the Bowland Shale, as follows:

GIIP	Low	Most likely	High
Tcf	15.1	102.0	172.3

These estimates cover an area of 300 square miles giving an average mid case in place volume of ca. 340 Bcf/ square mile with a range of 93 Bcf/square mile to 677 Bcf/square mile across the IGas North West acreage.

The proposed drilling programme which will commence in Q4 2013, in the North West, is at an advanced stage.  Long lead items (e.g. wellheads, casings etc.) have now been ordered and negotiations with drilling and related service companies are well advanced.

Commenting on this announcement Andrew Austin, CEO said:

"The announcement of the gas in place volumes of up to ca. 170Tcf in our North West acreage follows the completion of a very thorough study by the IGas Technical team and supports our view that these licences have a very significant Shale Gas resource with the potential to transform the company and materially benefit the communities in which we operate.

The planned drilling programme, commencing later this year, will further refine these estimates and advance our understanding of this shale basin.  We will in due course carry out further analysis and reinterpretation of existing seismic and subsurface data to evaluate the potentially prospective Shale resources in the East Midlands and Weald Basin licence areas."

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, March 2006, of the London Stock Exchange, has reviewed and approved the technical information contained in this announcement.  Mr. Blaymires has more than 29 years' experience.

ENQUIRIES

For further information please contact:

IGas Energy plc	Tel: [phone]
Andrew Austin, Chief Executive Officer Stephen Bowler, Chief Financial Officer
M Communications	Tel: [phone]
Ann-Marie Wilkinson Andrew Benbow
Jefferies International Limited	Tel: [phone]
Sara Hale
Canaccord Genuity	Tel: [phone]
Giles Fitzpatrick Tim Redfern

 

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