IGAS.L Regulatory News (IGAS)

26 April 2013

IGas Energy plc

("IGas")

Update on Bowland Shale and Response to Energy and Climate Change Committee Report

IGas, the onshore hydrocarbon producer, today confirms its plans to drill two further wells commencing this year to further appraise the significant potential resources it has in the Bowland Shale. 

Following the Ince Marshes-1 well, IGas has conducted an extensive evaluation programme of the shale potential in its North-west licences. This work has involved detailed seismic analysis, including reprocessing many kilometres of existing 2-D seismic, biostrat and chemostrat studies, basin modelling as well as extensive petrophysical and geomechanical studies using data from existing wells across the North- west. Based on the results of these studies a reservoir model of the Bowland Shale has been constructed and is being populated to better assist planning of future activity and integration of new data. 

One of the key outputs from this work, apart from firming up the appraisal well locations, will be an updated risked estimate of total gas in place (GIIP) across its North-west licences.

Commenting on the Energy and Climate Change Committee Report: 'The Impact of Shale Gas on Energy Markets', Andrew Austin, CEO of IGas Energy, said:

"We welcome publication of this report, which acknowledges the substantial benefits to the UK that shale gas can offer.

Natural gas from shale has the potential to transform the UK's energy market and boost the economy, create thousands of jobs, generate significant tax revenues and reduce our reliance on imported gas.

We note the Committee is keen to see exploration proceed quickly in order to validate current estimates and establish the true potential of shale gas in the UK. We continue to inform and engage with local communities and are working with the Government to establish how those communities can receive and share in the benefits that shale gas could bring. We continue to work with the Government on the best mechanisms to achieve this."

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