7th May 2015 07:23
LONDON (Alliance News) - IGas Energy PLC Thursday said it has completed its farm-out and purchase deal with INEOS for licences in the North West and East Midlands.
IGas and INEOS, the Swiss chemicals company, struck a deal in March for INEOS to acquire the PEDL 133, 145 and 193 and EXL 273 licences. IGas will get GBP30 million in cash for the sale, plus a funded forward work programme of up to GBP138 million gross, of which IGas' share will be fully funded by INEOS. IGas' share of the programme is expected to be around GBP65 milllion.
"We are delighted to have completed the transaction with INEOS and look forward to working with the INEOS team over the coming years. We now are operating on behalf of Total, GDF and INEOS, with a gross carried work programme of USD285 million, to unlock the shale gas potential across the North West and East Midlands," said IGas Chief Executive Andrew Austin.
Shares in IGas were up 6.1% to 30.5 pence on Thursday morning, one of the best performers in the AIM All-Share index.
By Sam Unsted; [email protected]; @SamUAtAlliance
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