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IGas Energy sees increasing momentum for UK shale

“We look forward to the future with excitement not only for IGas, but for the wider UK onshore industry as security of energy supply and diversification of the UK energy mix becomes ever more critical."
Igas operation
IGas ended the six month period with £16.3mln of cash

The UK’s nascent shale gas sector is seeing increasing momentum, that’s according to IGas Energy Plc (LON:IGAS) chief executive Stephen Bowler.

Bowler, in the company’s interim results statement, highlighted that Cuadrilla is now drilling its first well at the Preston New Road project and in the next few months Third Energy is expected to start hydraulic fracturing at the KM8 well in North Yorkshire.

Elsewhere, INEOS has submitted further applications for shale appraisal and 3D seismic acquisition, he noted.

“Alongside this activity, given the proximity to our Weald Basin acreage, we also await with interest the results from drilling and flow tests in this area,” Bowler said.

“Encouragingly, there is a significant level of activity onshore UK, and over the next 12 months, the industry is expected to have over half a dozen operators either drilling or flowing wells, including a number from IGas.

“We look forward to the future with excitement not only for IGas, but for the wider UK onshore industry as security of energy supply and diversification of the UK energy mix becomes ever more critical."

In its financial results statement, IGas reported revenue of £16.8mln up from £12.1mln in the comparative six months of 2016, and it reported a £8mln profit after tax versus a £25.2mln loss last year.

IGas ended the period with £16.3mln of cash and equivalents.

Production from conventional oil and gas operations averaged 2,326 barrels oil equivalent per day, compared to 2,299 boepd in the same six months of 2016.

The company expects to produce an average of 2,250 boepd for the full year due to maintenance, with the exit rate for 2,500 boepd.

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