Trading Update and Notice of Results

RNS Number : 8302T

Igas Energy PLC

09 October 2014

 



9 October 2014

IGas Energy PLC

("IGas" or "the Company")

Trading Update and Notice of Results

IGas (LSE: IGAS), one of the leading producers of onshore hydrocarbons in the UK, reports the following trading update for the 6 months to 30 September 2014 (the "period" or the "first half"), ahead of our half-yearly results due to be announced on 26  November 2014.

IGas continues to make good progress across the business. Production for the first half was 2,766 boepd (net) (2013: 2,704 boepd (net)) with net back (pre SG&A) of ca. US$65/bbl generated in the period. Cash balances as at 30 September 2014 were US$ 47.2m.

The Dart Energy Limited acquisition is in the final stages of legal completion with new IGas Energy Shares now being admitted to trading on AIM on Thursday 16 October.  The integration programme is already underway. 

Work is progressing, with a number of partners, on the submissions for various blocks in the 14^th Round of onshore licensing.  Applications will close on 28 October. 

The Company will announce initial gas in place estimates in the East Midlands and the first results from the ongoing core analysis of its exploration well at Barton Moss after the deadline for the 14^th licensing round submissions.  The Company will also commission an independent review of the combined group's assets post the Dart acquisition.

2D seismic acquisition in the North West is expected to commence in the next two weeks.  IGas is also planning the acquisition of 3D seismic across some of its acreage with a view to submitting applications for multi-well sites for drilling and hydraulic fracturing of gas from shale in H1 2015.

Civils construction at the Ellesmere Port exploration site is complete and the Company expects to start drilling next month. This well, which is a vertical exploration well, will be the third drilled in a sequence designed to give IGas a suite of results distributed across its licenced areas in the North West.  

The exploratory work undertaken to date, together with offset well data, has given the Company confidence to design an initial hydraulic fracture program for the first few wells in the area. This will prove invaluable for future planning applications for potential shale wells and the ability to demonstrate the commerciality of gas extraction from these deep formations. 

Progress on the 'Chase the Barrels' initiative continues with a focus on sustainable long-term production enhancements.  A recent example was the workover and reinstatement of a well at Singleton, in the Weald Basin, resulting in a 6% increase in average daily production at this site.

IGas is also in the advanced stages of three gas monetisation projects and expects to announce further details with the interim results.

For further information please contact:

IGas Energy plc	Tel: [phone]
Andrew Austin, Chief Executive Officer Stephen Bowler, Chief Financial Officer Ann-marie Wilkinson, Head of Communications
Jefferies International Limited	Tel: [phone]
Sara Hale Graham Hentrich Canaccord Genuity Tim Redfern	Tel: [phone]

MHP

Rupert Trefgarne                                                                    Tel: [phone]

 

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