In an article I read the other day, the "storm" over in Russia, the resulting knock on effects on the energy prices, the stakes bought in Russian Energy companies [e.g BP] and how vulnerable we are to their economic & political state, may turn the tide towards exploiting shale gas and other forms of energy sources.
I guess Igas could be subject to a buy-in at any time and it wouldn't surprise me if the big oil and gas interests weren't sniffing around but I think Mr Austin will be in a better bargaining position once he has some info from the Barton exploration. Austin is an old city finance guy so I'm confident he'll know how to play it. I think the first big share movement will come in April/May spurred by some combination of a buy-in, good Barton news, and the BGS South of England report. Therefore no prediction for three weeks but I'd be hopeful of 140 by the end of May, but DYOR.
Anyone know what this whalley is on about ? As far as I know iGas have only gone into partnership with Total on a couple of their sites. The area around Manchester and their Bowland holdings are still intact, also their oil production is still going strong. Perhaps I have missed something, and one of us is a git ! henryatkin
IGAS have been diluted and are now around 15% of total potential earnings. Do the maths. How much would they have to earn to justify the current s/p? On 15% of total earnings, 200m shares and a sector PER of around x14. For every Â£1m profit IGAS get 15% = Â£150,000 = 15,000,000p = 0.075 EPS x sector average PER 14 = s/p 1.05p So, that's a share price of around 1p for every Â£1m, they earn. Currently the s/p is suggesting earnings (after the government deduct their 62%) of Â£125,000,000. That's a lot of energy to be found every year after costs and that's just for IGAS's 15%. I think ALK are in a much stronger financial position with visible forward earnings so I anticipate them taking a slower and more cautious approach. Either way it makes us attractive as a potential takeover target which should underpin a higher PER.
No problem, hope it works out, I'm sticking with my PF of Lloyds as my safe(ish) bet and Igas as the riskier one, plus a plain stupid small punt on Talv which will probably end up under a Finnish **** heap.
Westminster will on Wednesday be urged to back fracking and “get behind natural gas from shale” in a letter to the Financial Times signed by 25 economists.
The exploitation of shale gas is still in its early stages in the UK but has already prompted a heated national debate, with strong local resistance in some areas where exploration has already taken place.
Opponents of fracking, or hydraulic fracturing, believe the process – which involves injecting a mix of water, sand and chemicals underground at high pressure to create fractures in the rock and release the oil and gas trapped inside – can pollute groundwater and trigger earthquakes.
There are also concerns shale gas production can increase greenhouse gas emissions and put local infrastructure under strain, particularly in rural areas.
But David Cameron has thrown his weight behind shale gas, arguing that it has the potential to lift the British economy and make the nation less reliant on unpredictable foreign sources of oil and gas.
The economists – who include Roger Bootle of Capital Economics, Patrick Minford of Cardiff Business School and David Bell of the University of Stirling – argue that shale gas from Lancashire could present significant opportunities for the country.
In their letter, which was organised by the North West Energy Task Force, a pro-fracking group, said shale gas exploitation could create thousands of jobs, ease the pressure on manufacturers, generate export-led growth and boost tax revenues.
Bob Rothschild, professor of economics at Lancaster University, said there were many “compelling arguments” in favour of shale gas. “There are many arguments from an economic point of view for developing this technology,” he said. “The British economy and the northwest in particular could benefit hugely.”
Igas won't be ordering frac pumps. That's third-party-equipment. The most likely people will be United Oilfield Services, currently operating in Poland with Europe- styled equipment, and performing the biggest frac jobs outside of the USA. They also use MAN trucks. Though the prime-movers (the engines which power the pumps) are sourced USA (for the moment.
Do your own research. I have personally shaken hands with the owner and President of UOS, and look forward to meeting with him again , but in Britain, not in Poland.
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