logo-loader
viewIGas Energy Plc

IGas Energy notes changes to UK shale licences after INEOS bought ENGIE UK interests

IGas's partnerships and 'carries' are key assets as the indebted group restructures.

IGas van
It affects eleven onshore UK licences

IGas Energy Plc (LON:IGAS) confirmed that INEOS has completed its acquisition of interests in shale gas licences held by ENGIE E&P UK (previously GDF Suez).

It affects eleven onshore UK licences - in Cheshire, Yorkshire, Nottinghamshire, and Lincolnshire - where IGas is partnered with INEOS.

And the ‘carries’ agreed by ENGIE in prior farm-out deals with IGas are now assumed entirely by INEOS.

IGas has around US$260mln worth of exploration and development costs ‘carried’ by its larger partners via farm-out deals, and that remains a key asset for the group as it conducts a financial restructuring.

Restructuring to put IGas on sound footing

The UK shale gas group, which also produces over 2,000 barrels per day from conventional reservoirs, earlier this month revealed plans to raise US$35mln from new strategic investor Kerogen Capital alongside a debt-for-equity deal with its lenders.

It means there’ll be dilution for existing shareholders, but, the deal allows the company to alleviate financial pressures and ease its debt burden.

The extent of the debt deal has yet to be confirmed, so shareholders don’t yet know how much new equity will be issued, but, Cannacord Genuity, in a note, suggests IGas would at least half its indebtedness down to at least US$60mln, from around US$120mln.

Quick facts: IGas Energy Plc

Price: 14.45 GBX

AIM:IGAS
Market: AIM
Market Cap: £17.84 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of IGas Energy Plc named herein, including the promotion by the Company of IGas Energy Plc in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

IGas is a 'diverse business with lots of opportunities' says CEO Bowler

Onshore UK focused IGas’s (LON:IGAS) production currently is 850,000 barrels per year, but that is dwarfed by its shale acreage in the East Midlands. This compares favourably with major shale plays in the US, says Bowler, who believes the reserves are sufficient to provide all the UK’s gas...

on 17/10/19

2 min read