News

January 27, 2010

Winter Gas Shortages Highlight The Strength In The IGas Energy Business Model As The AIM Company Prepares To Drill Another UK CBM Pilot Project

As reflected in the recent rally in the share price, now edging towards 90 pence a share, IGas Energy plc, the UK CBM developer, is starting 2010 in good shape. For starters, the AIM-quoted company, which is targeting the gas held in the vast coal deposits of former mining regions in northern England and Wales, has just announced a 41 per cent increase in its mid-case net contingent recoverable resources, up from 571 billion cubic feet to 807 bcf, equivalent to about 140 million barrels of oil. This gives just a taste of the potential on the company’s leases, where the high case gas-in-place tally now tops 8.5 trillion cubic feet of gas.

The increase is a result of equity changes in its projects following November’s acquisition of former Nexen interests.  The acquisition gave IGas operatorship of the Point of Ayr property in north Wales, where its stake was increased by 25 per cent to 75 per cent, while its interest in the Four Oaks, North Dees and Parkside licences increased by 15 per cent to 35 per cent. The resulting uplift in resources was confirmed by independent reserves consultancy DeGolyer and McNaughton and points...