A deal to buy Star Energy’s UK onshore production assets brings 11.1 million barrels of oil equivalent 2P reserves to IGas for an estimated US$12.70 per barrel. The firm has also made progress at its Doe Green coal-bed methane project.

IGas is preparing for an expanded drill programme with 4 -6 wells planned in the coming months. RBS analyst Phil Corbett, who upgraded the stock today, reckons the drill programme will help IGas convert resources into reserves but more importantly it could give investors more confidence in the viability of CBM.

IGas Energy has been in the headlines of late – for all the right reasons, of course. And it seems the company is also turning some heads in the Square Mile. It features in the list of top oil sector picks compiled by broker Numis, which looks at a handful of UK-focused unconventional plays.  This builds on recent 'buy' recommendations from influential City pair Goldman Sachs and Royal Bank of Scotland.

Domestic gas producer IGas revealed this morning it is buying the UK assets of Nexen Petroleum in an all paper deal. It is issuing 39.7 million shares to Nexen worth £26.6 million at Friday’s close, or the equivalent of 29.9 per cent of the company’s enlarged equity base.