4 Feb 2019 07:00
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.
4 February 2019
IGas Energy plc (AIM: IGAS)
("IGas" or "the Company")
Trading Update
IGas provides a trading and operational update for the year to 31 December 2018. Final results for the year ended 31 December 2018 will be announced on Thursday, 28 March 2019. The information contained in this statement has not been audited, and may be subject to change.
Financial Highlights
· Net production averaged 2,258 boepd for the year and for December 2018 the average rate was c. 2,365 boepd (net). Operating costs for the year were c$32.0/boe. We anticipate net production of between 2,100 - 2,300 boepd in 2019.
· Cash balances as at 31 December 2018 of £15.1 million and net debt of £6.4 million.
· 525,000 barrels hedged for 2019 with an average put price of US$58.5/bbl.
Operational Highlights
· We reached TD of the Tinker Lane well in December 2018. The purpose of the well was to delineate the edge of the shale in the Gainsborough Trough basin. Whilst indications of hydrocarbons were encountered within the Millstone Grit, the Bowland Shale was not present in the well. The well has now been plugged and abandoned, and plans are being drawn up to fully restore the site to its former condition.
· We spudded the well at Springs Road on 22 January 2019, the second well in our appraisal programme of the Gainsborough Trough basin in North Nottinghamshire. The main objective of the well is to appraise the Bowland Shale in a central basin area. The well location has been selected based on the recent 3-D seismic survey calibrated against the available offset well data.
· We successfully completed the Albury gas-to-grid project with full production start-up and gas export to the grid at the end of November 2018 in line with projections (of up to 170 boepd, dependent on demand).
· The Ellesmere Port Appeal public inquiry began on 15 January 2019. The inquiry now will reconvene on 26 February for 4 days until completion. The Planning Inspector will then opine on the representations of the various parties and determine if the appeal should be allowed or refused.
· The sale of certain non-core assets to Onshore Petroleum Limited is waiting on final regulatory approvals to allow completion.
Senior Management Changes
John Blaymires, Chief Operating Officer, will retire from the Company on the completion of the Springs Road vertical well.
John's day-to-day responsibilities will be taken on by Ross Glover, Development Director, Chris Beard, Production Director and Ross Pearson, Technical Director.
All three will join the Executive Committee with immediate effect, their biographies can be found at http://www.igasplc.com/about-us/executive-committee.
John will remain until the completion of the Springs Road vertical well, allowing us to benefit from his expertise and ensuring a smooth and efficient handover process.
Stephen Bowler, CEO, commented:
"2018 was yet again a very busy one across the business. We are delighted to have now spudded the Springs Road well in North Nottinghamshire, which will help us appraise the highly prospective Gainsborough Trough. Production levels remain robust, and we were delighted that Albury was brought on stream, on schedule in the last quarter of 2018.
John has been a core member of the senior team at IGas for the last eight years and has helped to build the operational capacity we have today. We are all grateful for his valued contribution in that time and wish him well in his retirement. We are pleased to announce that Chris Beard, Ross Glover and Ross Pearson are joining the Executive Committee with immediate effect. They bring highly complementary skills to the Executive as we move towards a very exciting period for the business in 2019 and beyond."
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 36 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
Henry Fitzgerald-O'Connor
Vigo Communications
Tel: +44 (0)20 7390 0230
Patrick d'Ancona/Chris McMahon