IGAS.L Regulatory News (IGAS)

07 July 2011

IGAS ENERGY PLC("IGas" or "the Company")

Doe Green Update: Cellars and Conductors set, 2nd Rig Contracted

IGas Energy, a domestic gas producer and leading developer of resources in the UK, is pleased to announce that construction of its third well at Doe Green (DG-3) has begun, starting the Company's accelerated programme to convert its resources into reserves and bring commercial production onstream.

IGas Energy is also pleased to announce that it has signed a second drilling contract. The BDF Rig 28 has been secured for a four well programme, beginning at DG3 as mentioned above. This well is expected to spud in mid-July.

BDF, and its Boldon Drilling and BB Drilling divisions, is the UK's largest onshore drilling contractor and has carried out Coal Bed Methane ("CBM") drilling not only in the UK but also in Belgium and Spain.

The Doe Green site located between Warrington and Widnes has been steadily producing gas and generating electricity for over two years from a pilot well DG-2.

DG-3 will be the first well drilled under the accelerated drilling programme announced with IGas's final results in May this year and will involve drilling one lateral well and subsequent branches off that lateral well into a different seam to the existing producing well at DG-2. Site construction works have begun and two cellars have been constructed and the conductors are in the process of being set. Production facilities to deal with the anticipated increased production from the site are in the process of being upgraded

Andrew Austin CEO said "This is the first of a multi well programme over the next nine months and marks the start of a step change in activity for IGas Energy. We have had excellent results from our pilot site at Doe Green and look forward to drilling beginning soon at DG-3. We are working with BDF again, a rig and crew that we have worked successfully within the past and know well."

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Notes to editors

IGas Energy produces and markets domestically sourced gas, primarily from coal bed methane (CBM). It is currently focussed on delivering commercial CBM production through an accelerated development programme.

IGas Energy has licences to extract hydrocarbons across the north of Wales and the north of England, covering an area of 1,756km² (equivalent to approximately 434,000 acres). IGas is the operator and sole owner of each of its licences.

IGas's unique position offers more than 1.7 Trillion Cubic Feet (Tcf) of technically recoverable gas (equivalent to 290 million barrels of oil) with customers located conveniently close to its operations, which includes the national gas network. IGas is therefore in a strong position to secure optimum gas prices from its production and to contribute to the UK's security of supply.

Further technical and quantitative information can be found on our website: www.igasplc.com/