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Igas Energy starts construction at Doe Green 3 site, well to spud mid-July

Igas Energy starts construction at Doe Green 3 site, well to spud mid-July

IGas Energy (LON:IGAS), a domestic gas producer and leading developer of resources in the UK, said it started construction of its third well at Doe Green (DG-3) near Warrington in Cheshire, starting the company's accelerated programme to convert its resources into reserves and bring commercial production onstream.

IGas Energy also announced it signed a second drilling contract. The BDF Rig 28 has been secured for a four well programme, beginning at DG3. The well is expected to spud in mid-July.

BDF, and its Boldon Drilling and BB Drilling divisions, is the UK's largest onshore drilling contractor and has carried out coal bed methane (CBM) drilling not only in the UK but also in Belgium and Spain.

The Doe Green has been steadily producing gas and generating electricity for over two years from a pilot well DG-2.

DG-3 will be the first well drilled under the accelerated drilling programme announced with IGas's full-year results in May this year and will involve drilling one lateral well and subsequent branches off that lateral well into a different seam to the existing producing well at DG-2.

Site construction works have begun and two cellars have been constructed and the conductors are in the process of being set. Production facilities to deal with the anticipated increased production from the site are in the process of being upgraded.

Chief executive Andrew Austin said: "This is the first of a multi well programme over the next nine months and marks the start of a step change in activity for IGas Energy. We have had excellent results from our pilot site at Doe Green and look forward to drilling beginning soon at DG-3. We are working with BDF again, a rig and crew that we have worked successfully within the past and know well."

IGas Energy produces and markets domestically sourced gas, primarily from coal bed methane.  It is currently focussed on delivering commercial CBM production through an accelerated development programme.

IGas Energy has wholly-owned licences to extract hydrocarbons across the north of Wales and the north of England, covering an area of 1,756 square kilometres.

IGas’s land position allows access to more than 1.7 trillion cubic feet of technically recoverable gas, equivalent to 290 million barrels of oil, with customers located conveniently close to its operations, which includes the national gas network.

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