I have £50K of my retirement pot inthis company but I prefer only to ramp when it's reasonable. The GIP figures are brilliant and everyone knows that. If the purpose of the Barton drill was to determine the limits of the productive basin then it's done that obviously from the presentation and improved the accuracy of the GIP figure. But if the purpose was to discover another massive store of gas then IMO it hasn't. I hope I'm wrong but the TOC figures seem relatively low compared to Marcellus which I guess is why AA referred back to the very much higher Ince Marshes result (very comparable tp Marcellus) at the end of the RNS which I think was his way of saying that the Barton drill might have been disappointing but the earlier results are still the basis for realistic optimism.
Assuming 21% of 147 TCF is recoverable . Recoverable gas worth £168 billion at today's wholesale price. Assume £9.86 billion production over lifetime of wells excl. Weald basin ( ref I GAS/ Peel Environmental report) gives net value of £158 billion ( dis-regarding NPV etc) Based on no. shares currently in circulation earning per share over lifetime of Bowland Shale wells is 535 pence. Please feel free to pick holes in these figures or extrapolate further.
IGAS (LON:IGAS) – Timely Update – For Everybody Today's announcement from IGAS underlines the timing that some management teams have in making decisions that could otherwise cause some difficulty. The results of the testing programme, on the shales series about which there has been much hype, will further enhance not only IGAS' acreage, but also the wider shale play in the UK. In this respect, this data will be keenly received by all the onshore players, who by association, should also trade better, especially those with acreage in the East Midlands Province, such as Egdon and Union Jack Oil.
"lack of a press release" - what u on about, Wilson?!! Worddog already showed a link to the presentation which is the important thing. Marcellus has a porosity of 0.5%-5% and the Bowland shale is 1.1%-2.9% so what Igas are saying is that the current results show a good overlap with the known qualities of a proven and successful US shale bed. Personally I'm topping up today as am very happy with the results from the latest RNS.
Here here! Great news in my opinion. Very pleasing results,and with Ellesmere to be drilled in the future then I can only see positive progression for mid to long term.I will now move on with even more confidence in Igas,and shall continue to buy.
I'm no geologist but I suppose the most telling thing today is the lack of a press release. Can someone who knows what they are talking about please advise just the way it is. Looks like Ince Marshes will be a better play than the Barton area. AA still seems absolutely confident that the work they are doing will demonstrate the commercial potential of shale in the area otherwise he wouldn't be setting up a CPR. The gas in place figures are still mind blowing.
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