IGas Energy (LON:IGAS) told investors the future of its conventional production operations will depend on oil prices.
The AIM quoted group, which is among the pioneers in the UK's embryonic shale gas industry, said production from conventional sources averaged 2,766 barrels oil equivalent per day (boepd) during the six months to September 30.
For the first half, IGas reported revenue of £34.5mln, a gross profit of £12.5mln and earnings (adjusted EBITDA) of £14.8mln.
It ended the period with £29.1mln of cash and equivalents, and had net debt of £80.8mln.
IGas's conventional operations are a cash-generating engine that helps support the group's ambitions to build a shale and CBM business.
Much progress was made on the unconventional side recently.
The group compiled and released positive results from the Barton Moss well, drilled near Manchester earlier this year, and this month it spudded its latest well, in Ellesmere Port, earlier this month.
In October IGas completed the acquisition of UK shale and CBM peer Dart Energy, which increased the group's acreage to over 1mln acres.
A subsequent revision of gas in place estimates saw the group's prospective shale gas resource base grow to 148tln cubic feet (in the 'mid' case).
And IGas continued efforts to expand further by making applications for new acreage via the UK government's 14th Onshore Licensing Round.
In the coming year the group plans to drill two more wells which for the first time are expected to be fracked and flow tested - prior wells have been purely exploration wells to examine the shale and CBM formations.
In this morning's results statement, chief executive Andrew Austin said: "The six months to the end of September saw significant work undertaken to materially progress the scale and potential of our operations and position us for further growth.
"We have continued to maintain the pace of progress across our assets and, following the Dart acquisition, we are now operating an $80 million gross work programme, funded by partners, to further appraise gas from shale and coal bed methane.
"Our forward plans on the producing assets will be shaped by the developing oil price environment."
IGas has a degree of protection from fallen oil prices due to hedging arrangements, contracted to September 30 2015, which allow the sale of 517,000 barrels of oil at a price of US$87.7 per barrel.
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