Thu, 4th Jul 2019 07:00
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.
4 July 2019
IGas Energy plc (AIM: IGas)
("IGas" or "the Company")
Weald Basin - PEDL 235 Exploration and Appraisal - c. 300million barrels of oil in place (STOIIP)
IGas is pleased to announce plans for a new site, within its conventional portfolio, and the drilling of up to two exploration/appraisal wells on PEDL 235, in the Weald Basin, which IGas owns 100%.
The initial well will explore and evaluate the resource potential of both the Portland Sandstones and the Kimmeridge Micrites. Recent technical studies by the IGas team have concluded that the Kimmeridge Micrites have the potential for significant resources of c.300 million barrels of oil in place within PEDL 235. In addition, the initial well will also appraise the Portland Sandstone gas discovery (IGas 2C resources includes c.1.4 MMBoe in relation to the gas discovery; https://www.igasplc.com/media/39949/DM-CPR-IGas-Reserves-and-Resources-as-of-31-December-2018.pdf).
The Company will shortly commence discussions with Surrey County Council, and other stakeholders, with a view to submitting a planning application. As part of the planning process, IGas will undertake community consultation to take account of feedback from local residents before submitting the full planning application.
Further to the announcement in March 2019, the Company has been unable to agree a transaction with Onshore Petroleum Limited and consequently all non-core assets will now remain with IGas. A 25% farm down of the PEDL 235 licence was included in the original transaction, accordingly IGas will now continue to hold 100% of the licence.
Commenting, Stephen Bowler, IGAS CEO said:
"As announced at the AGM in May 2019, we have been actively seeking sites that can appraise both the Kimmeridge Micrites and Portland Sandstones from a single well. Now, in conjunction with our own technical studies, and data from the discoveries in the Weald basin at Horse Hill, we are excited to be bringing forward up to two exploration/appraisal wells and production tests with the potential to unlock significant recoverable resources at a new site in the Weald Basin. We estimate hydrocarbon in place volumes of c.300 million barrels which have the potential to add significant value to the Company and our shareholders."
Qualified Person's Statement
Ross Pearson, Technical Director of IGas Energy plc, and a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, March 2006, of the London Stock Exchange, has reviewed and approved the technical information contained in this announcement. Mr Pearson has 18 years oil and gas exploration and production experience.
For further information please contact:
IGas Energy plc
Tel: +44 (0)20 7993 9899
Stephen Bowler, Chief Executive Officer
Julian Tedder, Chief Financial Officer
Ann-marie Wilkinson, Director of Corporate Affairs
Investec Bank plc (NOMAD and Joint Corporate Broker)
Tel: +44 (0)20 7597 5970
Sara Hale/Jeremy Ellis/Neil Coleman
Canaccord Genuity (Joint Corporate Broker)
Tel: +44 (0)20 7523 8000
Tel: +44 (0)20 7390 0230
Patrick d'Ancona/Chris McMahon