Igas Energy PLC - AGM Statement
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.
("IGas" or "the Company")
Interim Chairman's 2020 Annual General Meeting ("AGM") Statement
IGas today provides the following statement in advance of the Company's AGM which is being held at
Cuth McDowell, Interim Non-executive Chairman said:
"I would like to begin by paying a tribute to all of our staff who have been working so hard to keep the business running and providing vital support to the country, by continuing to produce oil and gas onshore, during these most unpredictable and challenging of times.
The health and wellbeing of our people, partners and the communities in which we operate remains the Company's overriding priority. As key workers, activity across the business has continued with strict adherence to Government advice and the Company adapted quickly to remote working, where possible, in March. Our procedures remain under regular review to maintain safe working environments and stay in line with the most recent government guidance.
Reflecting on our 2019 results, we continued to deliver on our strategic priorities and set about further reducing our financing costs through a
Operationally, in 2019, we delivered production well within guidance, made progress in advancing incremental production projects and made a potentially world-class discovery at our
As is well documented, the early part of 2020 has been a turbulent one for not only this industry, but for each and every one of us. We have had to re-evaluate short term priorities to weather the oil price disruption and COVID-19 impacts.
As announced on 1 May, we took the prudent decision to temporarily shut-in a number of sites during May and June, which will have a positive impact on our cash flow during these two months of c.£500k and will reduce production by c.600 boepd for this period. We have accessed the Government's Job Retention Scheme with approximately 40 employees currently placed on furlough. We continue to review the number of shut-in sites on a regular basis and we will monitor the oil price and the furlough scheme to see when production should be restarted. Whilst this action demonstrates our focus on conserving cash it will have an impact on our production for the full year and once we have fully reviewed the shut-in production situation we will update the market with new guidance.
In light of ongoing oil price and market volatility we are currently undertaking a further, in-depth review of G&A costs.
In the longer term, we will continue to drive the business forward to maximise the value of our existing assets, many of which still have significant potential. We will seek to develop new assets to deliver future shareholder value as we position ourselves to play an important role in the
In due course, I am sure that we will be able to reflect upon the unprecedented challenges that the COVID-19 pandemic has brought with pride in the way in which the organisation and the infrastructure of the business has stood up."
For further information, please contact:
Canaccord Genuity (Joint Corporate Broker) Tel: +44 (0)20 7523 8000
Vigo Communications Tel: +44 (0)20 7390 0230
This information is provided by RNS, the news service of the
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Market Cap: £17.77 m
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