Trading Update

RNS Number : 2524H

Igas Energy PLC

31 July 2019

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.

31 July 2019

IGas Energy plc (AIM: IGAS)

("IGas" or "the Company")

Trading Update

IGas today provides the following statement in relation to trading for the period 1 January to 30 June 2019.  This update is issued in advance of the Company's Interim Results, which will be released on 12 September 2019.

Financial Highlights

·    Net production averaged 2,360 boepd in H1 2019, with expected average net production for the year remaining in the range c.2,200-2,400 boepd, and operating expenditure anticipated to be on budget at $32.5/boe in 2019 (assuming an exchange rate of £1:$1.30).

·    The Company expects net cash capex for 2019 to be £9.0 million, of which £3.0 million will be on our producing assets and £6.0 million will be on our development assets (including shale and conventional development).

·    Cash balances as at 30 June 2019 were £14.4 million with net debt of £5.9 million (31 December 2018 net debt £6.4 million).

Operational Highlights

·    We continue to progress projects in our core conventional business and recently announced two projects:

o  A waterflood project at Scampton in the East Midlands. The recent D&M CPR estimated 0.4 million barrels of incremental 2P (Probable Undeveloped) reserves for this project;

o  Plans for a new site in PEDL 235 in the Weald Basin.  IGas estimates hydrocarbon in place volumes on the licence of c.300 million barrels which have the potential to add significant value to the Company. 

·    Shale appraisal and development plan:

o  The SR-01 well in North Notts delivered very encouraging results following the detailed analysis of the 147m core acquired within the Bowland Shale Formation, the primary target. The well encountered 429m of hydrocarbon-bearing Bowland Shale, throughout which significant gas indications were recorded. Analysis is ongoing with a further announcement expected in the third quarter of 2019.

o  Restoration of the Tinker Lane site is underway.

·    The Ellesmere Port appeal was recovered by the Secretary of State ("SoS") at the end of June 2019 in order to determine a decision. The Planning Inspectorate has set a deadline for the report and recommendation by the inquiry inspector of 23 January 2020.

Stephen Bowler, Chief Executive commented:

"Production has continued in line with budget, we confirm our expected average production for the year and remain excited about our forward work programme of incremental projects which have the potential to add significant value to the Company and our shareholders.

We look forward to early engagement with the newly appointed Cabinet members and ministers to discuss the role of indigenous oil and gas production as we transition to net zero carbon emissions by 2050.  The development of UK shale gas is compatible with the Committee on Climate Change report, with UK shale gas having at least 50% fewer pre-combustion emissions than LNG and long distance pipeline gas and our forecasts showing that by the mid-2030s we could reduce our import dependency by 50% through the creation of only 60 onshore sites."

Qualified Person's Statement

Ross Pearson, Technical Director 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 Pearson has 18 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
Investec Bank plc (NOMAD and Joint Corporate Broker)	Tel: [phone]
Sara Hale/Jeremy Ellis/Neil Coleman
Canaccord Genuity (Joint Corporate Broker)	Tel: [phone]
Henry Fitzgerald-O'Connor/James Asensio
Vigo Communications	Tel: [phone]
Patrick d'Ancona/Chris McMahon

 

END

 

 

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