(Alliance News) - UK-focused onshore gas producer Igas Energy PLC on Thursday said its full-year production was in line with expectations.
Production in 2019 averaged 2,325 barrels of oil equivalent per day, with operating costs at USD30 a barrel of oil equivalent.
For 2020, Igas expects average output in the range of 2,250 and 2,450 barrels of oil equivalent per day, with operating costs unchanged at USD30 a barrel.
The company also reported increased recoverable reserve estimates from its oil and gas interests.
At December 31, the 2P net reserves and resources, defined as the best estimate of commercially recoverable reserves, increased by 10% year-on-year to 16.1 million barrels of oil equivalent, from 14.6 million.
The low estimate, or 1P, was 7.9% higher at 10.6 million barrels of oil equivalent.
Net present value with a 10% discount now stands at USD183 million, which the company noted is "significantly" higher than its market capitalisation.
Chief Executive Officer Stephen Bowler said: "The production business has performed well in 2019 and continues to generate strong free operating cash flow. The independent expert's valuation of our conventional assets is roughly USD180 million on a 2P NPV10 basis, an increase of USD20 million compared to a year ago, which is significantly in excess of our current market capitalisation."
Igas shares were 1.9% higher at 40.27 pence each in London on Thursday afternoon, giving it a market cap of GBP49.3 million.
By Eric Cunha; ericcunha@alliancenews.com
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