10th Mar 2015 08:50
LONDON (Alliance News) - IGas Energy PLC shares pushed higher on Tuesday morning after the company said it has signed a farm out and purchase agreement with Swiss chemicals company INEOS.
Under the deal, INEOS will acquire an interest in certain licences in the North West and East Midlands from IGas, along with its participating interest in the acreage held under the PEDL 133 licence in Scotland.
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.
IGas shares were up 19% to 28.50 pence on the news, one of the best performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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