1st Sep 2014 11:35
LONDON (Alliance News) - IGas Energy PLC Monday said it is currently planning for further seismic acquisitions in the north west of England that will start in the next couple of months, and it will be bidding for various blocks in the UK's 14th round of onshore licensing.
The data from the further seismic acquisition will help identify potential areas that will optimise future developments for shale gas production, IGas said in a statement ahead of its annual general meeting.
The British oil and gas explorer and developer also said production remains in line with budget, and its focus is on sustainable long-term production enhancements. It is in the advanced stages of three gas monetisation projects.
IT capabilities to instrument and control the oil fields and gain both cost savings and efficiencies has been extended across the remaining fields, with a view to install similar technology systems in the shale developments when they are implemented, it said.
The Ellesmere Port exploration well, a vertical exploration well, will be the third drilled in a sequence designed to give IGas a suite of results distributed across its licenced areas in the north west.
The exploratory work together with offset well data has given the company the ability to design an appropriate hydraulic fracture program for the initial wells in the area.
"This will prove invaluable for future planning applications for potential shale wells and the ability to demonstrate the commerciality of gas extraction from these deep formations" Chairman Francis Grugen said in the statement.
The Gainsborough pilot is "progressing well" and the Welton pilot water injection scheme due to begin shortly "will help the company understand the potential of secondary recovery to enhance production and reserves within the IGas portfolio" said Gugen.
The company's 3-D seismic acquisition in the east midlands has been processed with the results from the analysis assisting with the site selection process for a proposed well to be drilled in 2015.
"Since the announcement of our full year results in July, we continue to make good progress across the business" said Grugen.
IGas Energy shares were up 1.72% to 104.77 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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