9th Oct 2014 07:39
LONDON (Alliance News) - IGas Energy PLC Thursday said it has increased production in the last six months, with drilling at one of its assets based in the north west of England due to be drilled next month, followed by a number of wells to be fracked and drilled in 2015.
IGas Energy, the onshore hydrocarbon producer in the UK, has sites in Scotland, the East Midlands, the North West and in southern England.
Production for the six months ended September 30, totalled 2,766 barrels of oil equivalent per day, up from 2,704 barrels of oil equivalent per day in the same period in 2013. IGas reported an average achieved price of USD65 a barrel in the period. Production is evenly spread between its assets in the east midlands and the Weald Basin in the south.
IGas said it is continuing to work with a number of partners on its submissions for numerous blocks in the 14th round of onshore licensing, with applications due by the end of October 28.
Its 2D seismic acquisition in its North West project is due to begin in the next two weeks, and the company is also preparing a 3D seismic with a view of applying for multi-well sites for drilling and fracking in the first half of 2015, it said in a statement. Its Ellesmere Port exploration site, also in the north west, has been completed and the company will start drilling in November, it added.
"The exploratory work undertaken to date, together with offset well data, has given the company confidence to design an initial hydraulic fracture program for the first few wells in the area," said IGas.
IGas added that its acquisition of Dart Energy Ltd is in its final stages with an integration programme underway. In May, the company announced its intention to acquire Dart Energy for GBP117.1 million, a deal that has now created a company with the largest area in the UK licensed for shale gas fracking.
IGas shares were up 5.8% to 79.05 pence per share Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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