2 Mar 2011 07:00
2 March 2011
IGas Energy PLC
("IGas", "the Company" or "the Group")
Acquisition of Nexen Exploration U.K. Limited - Change of control confirmation
IGas, a domestic gas producer and leading developer of unconventional gas resources in the UK, today announces that it has received the necessary regulatory approval to become the operator and sole owner of its licences.
This follows an announcement on 31st January 2011 of the signing of an agreement with Nexen Petroleum UK Limited, a wholly owned subsidiary of Nexen Inc, to acquire the entire issued share capital of Nexen Exploration UK Limited, resulting in IGas becoming the operator and sole owner of each of its licences. The announcement specified that the acquisition was conditional, inter alia, upon an approval of change of control by the Department of Energy and Climate Change and approval by IGas shareholders.
IGas was yesterday informed that the Secretary of State for Energy & Climate Change, does not intend to exercise his powers under the relevant model clauses incorporated in the licences held by Nexen Exploration U.K. Limited to revoke any of these licences or to seek any further changes of control of Nexen Exploration U.K. Limited following its acquisition by IGas Energy plc.
The closing of the transaction is now only subject to approval of the shareholders of IGas at the general meeting scheduled to be held at 10.00am on March 4th.
Ends
For further information please contact:
IGas Energy Plc | Tel: +44 (0)20 7993 9901 |
Andrew Austin, Chief Executive Officer | |
RBS Hoare Govett | Tel: +44 (0)20 7085 5000 |
Stephen Bowler/ John MacGowan | |
Kreab Gavin Anderson | Tel: +44 (0)20 7074 1800 |
Ken Cronin/ Kate Hill/ Anthony Hughes |
Notes to Editors
NOTES TO THE EDITOR
IGas was set up to produce and market domestic sourced gas, primarily from unconventional reservoirs, particularly coal bed methane. IGas is now producing gas from its pilot production site at Doe Green in Warrington and selling electricity through its on-site generation, a UK first from CBM. Initial production rates indicate that the Company should exceed its threshold for commerciality.
Following the completion of the Nexen Exploration UK transaction, IGas will have 100 per cent ownership interests in eleven PEDLs in the UK, wholly own two methane drainage licences and have a 100 per cent interest in three offshore blocks under one seaward petroleum production licence. These licenses cover a gross area of approximately 1,756 km2. The post Acquisition mid case GIIP is 9,107Bcf (source: Equipoise Solutions Ltd), excluding any shale potential.
The coal seam both generates and traps the gas, which can be extracted by drilling into the seam and collected for use as fuel. CBM is exactly the same as other forms of natural gas, and is used to provide both industrial and domestic power and has the potential to be an important new source of energy for the UK.
Glossary
The following definitions apply throughout this announcement, unless the context requires otherwise
Bcf | billions of standard cubic feet of gas |
boe | barrel of oil equivalent |
CBM | coal bed methane |
CPR | competent person report |
DECC | The Department for Energy and Climate Change |
FDP | field development programme |
GIIP | gas initially in place |
PEDL | Petroleum Exploration and Development Licence |
Tcf | trillions of standard cubic feet of gas |