IGAS.L Regulatory News (IGAS)

17 October 2016

IGas Energy PLC (AIM :IGAS)

("IGas" or "the Company")

IGas is pleased to announce the publication of the full and final results of the Competent Persons Report ("CPR") by DeGolyer & MacNaughton ("D&M"), the leading international reserves and resources auditors.

The reports comprise an independent evaluation of IGas conventional oil and gas interests as of July 31 2016, a report as of July 31 2016 on the unconventional prospective resources and a report as of June 30 2016 on reserves and revenue and contingent resources.*

The full reports can be found at http://www.igasplc.com/investors/publications-and-reports.

Conventional Highlights

D&M estimates have confirmed a continuing high conventional reserves replacement ratio of 354% for 1P reserves and 205% for 2P reserves for the period ending 30 June 2016.

IGas net reserves and resources (MMboe)

1 IGas estimates

2 D&M estimates from separate report as at 30 June 2016

3 2C additions include the 14th Round conventional fields.

The IGas 2P oil and gas reserves to production ratio (R:P) has consequently increased from 14 at 31 December 2015 to 15 as at the report date.

The D&M independent evaluation has also included an estimate of 2C net contingent conventional resources of 21.8 MMboe for IGas properties based on 5.8 Mcf/boe. These resources include oil and gas resources within producing and undeveloped fields that can be readily developed with infill drilling and gas monetisation projects. Several gas monetisation projects now require only sales agreements and final investment decisions (FID) to be able to proceed, which will lead to future reserves additions and incremental production.

D&M has calculated the future cashflows that can be expected for all IGas net reserves based on production forecasts, capex, opex and price assumptions. Despite continuing low commodity prices and seven fields being currently evaluated as having zero reserves, mainly due to a lack of economic viability, the 1P NPV10 estimate is US$195 million and the 2P NPV10 estimate is US$277 million.

* The report as at June 302016 has final minor corrections to the D&M estimates of 2C resources and NPV10 previously included in the announcement of IGas Unaudited Results for the six months ended 30 June 2016.

Prospective Shale Gas Resources

D&M has produced a separate independent evaluation of risked prospective shale gas resources in the IGas East Midlands and North West licence areas.

Using a deterministic method adopted by the British Geological Survey and including recently awarded 14th Round licences, D&M have estimated an IGas gross mean gas initially in place (GIIP) of 221 trillion cubic feet. D&M reports an IGas gross GIIP best estimate of 106 trillion cubic feet using PRMS guidelines. These estimates include uncertainty in the productive area.

After application of adjustments for productive areas and recovery factors based on D&M's worldwide experience with analogous shale gas basins, D&M have estimated unrisked IGas net shale gas prospective resources of 11 trillion cubic feet.

D&M have estimated that IGas has 2.5 trillion cubic feet (ca. 440 MMboe) of net risked shale gas resources after taking into account an estimated geological chance of success.

John Blaymires, Chief Operating Officer 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. Blaymires has more than 30 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 4000

Sara Hale/Jeremy Ellis/George Price

Canaccord Genuity (Joint Corporate Broker)

Tel: +44 (0)20 7523 8000

Henry Fitzgerald-O'Connor

Vigo Communications

Tel: +44 (0)20 7830 9700

Patrick d'Ancona/Chris McMahon

Glossary

£ The lawful currency of the United Kingdom

$ The lawful currency of the United States of America

1P Low estimate of commercially recoverable reserves

2P Best estimate of commercially recoverable reserves

3P High estimate of commercially recoverable reserves

1C Low estimate or low case of Contingent Recoverable Resource quantity

2C Best estimate or mid case of Contingent Recoverable Resource quantity

3C High estimate or high case of Contingent Recoverable Resource quantity

AIM AIM market of the London Stock Exchange

boepd Barrels of oil equivalent per day

bopd Barrels of oil per day

Contingent Recoverable Resource - Contingent Recoverable Resource estimates are prepared in accordance with the Petroleum Resources Management System (PRMS), an industry recognised standard. A Contingent Recoverable Resource is defined as discovered potentially recoverable quantities of hydrocarbons where there is no current certainty that it will be commercially viable to produce any portion of the contingent resources evaluated. Contingent Recoverable Resources are further divided into three status groups: marginal, sub‑marginal, and undetermined. IGas' Contingent Recoverable Resources all fall into the undetermined group. Undetermined is the status group where it is considered premature to clearly define the ultimate chance of commerciality.

Drill or drop - A drill or drop well carries no commitment to drill. The decision whether or not to drill the well rests entirely with the Licensee being driven by the results of geotechnical analysis. The Licence will, however, still expire at the end of the Initial Term if the well has not been drilled.

Firm well - A firm well is classified as a firm commitment to drill a well. It is not contingent on any further geotechnical evaluation (i.e. it is a fully evaluated Prospect).

GIIP Gas initially in place

MMboe Millions of barrels of oil equivalent

MMscfd Millions of standard cubic feet per day

PEDL United Kingdom petroleum exploration and development licence

PL Production licence

Tcf Trillions of standard cubic feet of gas

UK United Kingdom