14 Dec 2022 07:00
14 December 2022
IGas Energy plc (AIM: IGAS)
("IGas" or "the Company")
Operations Update
IGas, the UK onshore energy company, provides the following operations update.
Conventional Assets
The Company remains on track to deliver its full year production forecast of 1,900-1,950 boepd. In early October a production drive was initiated to ensure wells, plant and equipment had the maximum uptime, going from 3 to 5 fully operational rigs, returning 18 offline wells to production, converting 2 wells from jet pump to beam pumps, lowering operating costs and significantly increasing water injection capacity across our asset base.
The planning application for the Glentworth project has now been submitted to Lincolnshire County Council and we await validation. Phase I has the potential to add c.200 bbls/d and development of c.1.0 mmstb 2P reserves.
Geothermal
The joint application with SSE to the Green Heat Network Fund is now under consideration by the scheme managers, Triplepoint, and BEIS and we await a decision in early 2023.
A total of five tenders have been submitted through the Carbon Energy Fund to conduct detailed feasibility studies into supplying renewable heat to five NHS Trusts. If successful, these could result in five long term renewable heat supply contracts.
Chris Hopkinson, Interim Executive Chairman, said:
"I am pleased to report that we remain on track to deliver our expected production forecast of 1,900-1,950 boepd, given the challenges in the first half of the year and would like to thank everyone in the business for their hard work in achieving our goal.
When I stepped into the role of Interim Executive Chairman, I indicated that there were changes in the business required to make it more efficient to ensure operational excellence in our conventional assets, expedited growth in our geothermal business and we have a structure that appropriately reflects the size and shape of the current business.
After a thorough review of the business, there has been a restructuring and rightsizing of the Executive Committee that will enable improved strategic planning and more efficient decision making, as the business looks to create a strong and relevant future for its investor base.
We are focused on putting cash generated during high commodity prices to work into maximising recovery from our existing assets and developing near term incremental production opportunities as well as growing our nascent geothermal business into a material enterprise."
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 21 years oil and gas exploration and production experience.
For further information please contact:
IGas Energy plc Tel: +44 (0)20 7993 9899
Chris Hopkinson, Interim Executive Chairman
Ann-marie Wilkinson, Director of Corporate Affairs
Investec Bank plc (NOMAD and Joint Corporate Broker) Tel: +44 (0)20 7597 5970
Virginia Bull/Chris Sim
Canaccord Genuity (Joint Corporate Broker) Tel: +44 (0)20 7523 8000
Henry Fitzgerald-O'Connor/James Asensio
Vigo Consulting Tel: +44 (0)20 7390 0230
Patrick d'Ancona/Finlay Thomson/Kendall Hill