IGas production rates fall as costs increase

(Sharecast News) - Oil and gas outfit IGas saw production rates fall back and operating costs rise in its last trading year with chief operating officer John Blaymires.IGas saw its rate of oil production drop 3.3% to 2,258 barrels of oil per day in the year ended 31 December - while December marking a slight improvement on the yearly average at 2,365 boepd.Costs shot up 12% to $32m as a result of IGas' efforts to encounter hydrocarbons at its Tinker Lane asset came up short and lead to the abandonment and plugging of the site.On the other hand, IGas successfully completed its Albury gas-to-grid project with full production start-up and gas export to the grid starting at the end of November.Chief executive Stephen Bowler said: "2018 was yet again a very busy one across the business.""Production levels remain robust, and we were delighted that Albury was brought on stream, on schedule in the last quarter of 2018."Elsewhere, IGas revealed that chief operating officer John Blaymires had announced his intention to retire from the group upon completion of its Spring Road vertical well. Day-to-day operations will be taken over by the group's development, production and technical directors.As of 1210 GMT, IGas shares had dipped 1.53% to 79.37p.