IGAS Energy.

[IGAS] http://www.thegwpf.org/bowland-basin-hold-1000-trillion-cubic-feet-shale-gas/ http://www.aapg.org/explorer/2013/02feb/uk_shale0213.cfm http://www.bbc.co.uk/news/business-22748915 http://www.bbc.co.uk/news/science-environment-11175386

[IGAS] Acquisition of Caithness Oil Limited [IGAS] One of the leading producers of onshore hydrocarbons in the UK, announces that it has entered into a Heads of Agreement with Caithness Petroleum Limited, a privately-owned, British independent oil and gas exploration and production company, to potentially acquire Caithness Oil Limited ("Caithness Oil"), its UK subsidiary, for a total consideration of £8.95million to be satisfied through the allotment of 7,789,382 IGas ordinary shares. Under the terms of the HOA, [IGAS] will acquire 100% interests in the licences, located in the northern coastal area of the Inner Moray Firth, in which Caithness has an interest, including the Lybster field, following settlement of obligations, prior to completion, under an existing agreement between the Caithness group and Trap Oil Group plc group of companies. The Lybster Field was discovered in 1996 by Premier Oil at well 11/24-1 which tested 36 API oil at over 2,000bopd from the Beatrice Formation. The field was put into production in May 2012 and, prior to being temporarily shut-in for a routine workover, was producing approximately 200bopd gross and in excess of 2mscf/d of associated gas. The oil is currently transported and sold to facilities at Nigg. In addition to increasing [IGAS]' current production, the acquisition would offer additional upside through utilisation of significant existing tax losses and monetisation of associated gas. The Proposed Acquisition is conditional, inter alia, upon receipt of the requisite third party and Department of Energy and Climate Change ("DECC") consents, completion of confirmatory due diligence and the execution of a definitive sale and purchase agreement in due course. Commenting, [IGAS] CEO, Andrew Austin said: "I am pleased we have managed to secure this opportunity to increase our existing production and one that offers significant upside potential. The transaction is in line with our strategy to grow our production base in order to fund our exploration activities and to take advantage of acquisition opportunities. [IGAS] continues its strategy of delivering secure hydrocarbons for Britain."

[IGAS] announce they have signed a Farm-out Agreement with Total E&P UK Limited , a wholly owned subsidiary of Total SA, under which Total will acquire a 40% interest in the UK Onshore Petroleum Exploration and Development Licences PEDL139 and PEDL140 ("the Licences") located in the Gainsborough Trough in Lincolnshire. The Licences cover an area of 240Km2 and border PL178 and PEDL006 at Beckingham, an existing IGas producing field. IGas will become operator of the Licences upon completion. Under the terms of the Agreement, Total will pay $1.6 million in back costs to the partners and fund a fully carried work programme of up to $46.5 million, with a minimum commitment of $19.5 million. At the end of the carried work programme Total will become operator of the Licences. The programme will include the acquisition of 3D seismic; the drilling and testing of a vertical exploration well and associated well pad construction; and, conditional on the success of the testing of the exploration well, the drilling and testing of a second appraisal horizontal well. On completion of the transaction the interests in the Licences will be: Total E&P UK Limited (40%), GP Energy Limited (a subsidiary of Dart Energy Europe) (17.5%), Island Gas Ltd (a subsidiary of IGas) (14.5%), Egdon Resources UK Ltd (14.5%), and eCorp Oil & Gas UK Ltd (13.5%). Completion is expected to take place not later than 30th June 2014. As part of its ongoing plans for the development of natural gas in the North West, the Company is also announcing its intention to apply for permits for the acquisition of extensive 3D seismic surveys across a number of licence areas. This will enable IGas to identify several potential exploration and development sites in the area. The Company will also begin the permitting process for the acquisition of 3D seismic surveys in the East Midlands and the South of England. At our exploration site at Barton Moss, we have set the conductor and continue to drill ahead. As previously announced, the exploration drilling process is expected to be completed in Q1 2014, with analysis of the core and log data beginning thereafter. Commenting Andrew Austin, CEO of IGas Energy said: "Today's announcement represents a further step in our exploration programme to develop natural gas within Britain and increases our interest in the Licences. The entry of the first major into UK shale gas licences is a further endorsement of the potential that exists following the recent commitments by Centrica and GDF Suez, and demonstrates strong support for our operating capability. The future development of natural gas has the potential to create thousands of jobs, generate significant tax revenues, reduce our ever increasing reliance on imported coal and gas and make a positive contribution to the country's balance of payments. As operator, we will be embarking on a stakeholder programme in the area which will involve extensive community engagement." Commenting on the acquisition, Patrice de Viviès, Total's Senior Vice President for Northern Europe, said: "This opportunity is an important milestone for Total E&P UK and opens a new chapter for the subsidiary in a promising onshore play. The Group is already involved in shale gas projects in the US, Argentina, China, Australia and in Europe in Poland and in Denmark, and will leverage its expertise in this new venture in the UK."

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