IGas Energy PLC (LON:IGAS) has detailed some 11 trillion cubic feet (tcf) of potentially recoverable gas resources within its UK shale portfolio, which marks it as a ‘world class’ asset in the sector.
To put it into context, that’s enough to exclusively meet the UK’s entire gas needs for almost four years.
The figure comes from a third-party assessment of the assets, conducted by DeGolyer & MacNaughton (D&M), which estimates there is a total of 102 tcf of shale gas in place across the IGas projects.
The 11 tcf figure is an estimate of the unrisked prospective resource, which accounts for the likely ‘productive area’ and recovery factor, a risked estimate factoring in presumed geological chance of success amounts to 2.5 tcf.
The new estimates came after D&M assessed the entire IGas UK asset base; D&M also upgraded the group’s conventional oil reserves.
Proved (1P) reserves totalled 9.39mln barrels oil equivalent (boe) at the end of June 2016, up from 8.31mln, whereas proved and probable (2P) reserves amounted to 13.77mln boe.
Estimated contingent resources, meanwhile, increased to 21.83mln boe in 2016, from 12.67mln barrels in the year before.
IGas noted that the contingent resources include additional barrels within producing and undeveloped fields that can be readily developed with infill drilling and gas monetisation projects.
It added that several gas monetisation ventures are ready, requiring only sales agreements and final investment decisions before they can be advanced.
D&M calculated between US$195mln and US$277mln of future cash flows for IGas’s net reserves – and that’s despite IGas having seven fields that presently have zero reserves due to oil prices that render them uneconomic.