Appointment of Greenhill for Shale 'Farm Out'

18 June 2012

IGas Energy PLC

IGas Energy announces appointment of Greenhill as advisors on "Farm-Out" of Bowland Shale

IGas Energy PLC is pleased to announce the beginning of a formal process to find a "farm-in" partner for the Bowland Shale prospect in Cheshire, UK, to accelerate the successful development of this potentially significant resource base.

The Company's Ince Marshes well has demonstrated the presence of the Bowland shale, which has the potential to at least double the independent pre-drill estimate of gas initially in place. Logs and samples from this well are being analysed.

The Board has appointed the investment bank Greenhill as its advisor to conduct this process, which is expected to be completed within 4 to 5 months.

Andrew Austin, IGas CEO commented:

"The Bowland Shale offers a considerable addition to our existing conventional and unconventional resources and its potential materiality represents an opportunity for both the Company and future partners. We have already received a number of expressions of interest from world-class companies to partner with us for what looks to be a highly significant opportunity. We will now move forward and find the right partner with the appropriate complementary skills and resources to work with us during this exciting project. 

"The UK Government's announcement about a new gas generation strategy and the support given in the budget to the industry are all signs that UK sourced hydrocarbons are going to play an increasingly important role in the future energy mix of the country."

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Greenhill & Co. International LLP ("Greenhill"), which is authorised and regulated by the Financial Services Authority, is acting exclusively for IGAS Energy PLC (the "Company") and for no-one else and will not be responsible to anyone other than the Company for providing the protections afforded to its clients nor for providing any advice in relation to the Farm-Out process, or the contents of this announcement or any transaction, arrangement or matter referred to herein.