IGas secures significant drilling capacity

02 February 2011

IGAS ENERGY PLC("IGas", "the Company" or "the Group")

IGas secures significant drilling capacity

The Board of IGas, a domestic gas producer and a leading developer of unconventional gas resources in the UK, is delighted to announce that it has entered into a Heads of Agreement to create a commercial joint venture with Meehan Drilling which will immediately give IGas direct access to at least 120 days drilling capacity (rig equipment and personnel) in 2011 and further capacity if required on a preferential basis.

Meehan Drilling has drilled for several operators in the UK and the joint venture specifically involves its Schramm TXD rig. This rig is regularly used in the US for drilling for unconventional gas and has a proven track record of economic delivery of wells.

 John Blaymires IGas Chief Operating Officer said "This joint venture will have significant strategic and tactical importance as the company continues to grow. This joint venture secures for IGas the ability to fulfill the 2011 objective of delivering a commercial production site, whilst widening the scope of our activity and will be a critical element of the 2012+ delivery capability. This is the first of a number of steps we are taking to advance our plans following the announcement of our planned acquisition of Nexen Exploration UK Ltd."

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Notes to Editors

IGas Energy PLC ("IGas")

IGas was set up to produce and market domestic sourced gas, primarily from unconventional reservoirs, particularly coal bed methane. IGas is now producing gas from its pilot production site at Doe Green in Warrington and selling electricity through its on-site generation, a UK first from CBM. Initial production rates indicate that the Company should exceed its threshold for commerciality. IGas has 100% ownership of eleven PEDLs in the UK, two methane drainage licences and three offshore blocks under one Seaward Petroleum Production Licence. These licences cover a gross area of approximately 1,756 km2.