Announcement re: press speculation

31 October 2016

IGas Energy plc (AIM: IGAS)

("IGas" or the "Company")

Announcement re: press speculation

IGas Energy confirms, further to last week's announcement of Wednesday 26 October and press reports over the weekend, that as it seeks a capital structure appropriate for the business in the current operating environment it continues to discuss a range of options with a number of key stakeholders. Those include discussions with bondholder Trans European Oil & Gas ("TEOG") (whose largest shareholder is understood to be KKR) who has proposed a sale of the company's conventional assets.

The board will continue discussions with its key stakeholders concurrent with a number of strategic investors as it continues to assess options which will allow the Company's capital structure to be sustainable in the current oil price environment and enable the Group to capitalise on value accretive opportunities.

Ends.

For further information please contact:

IGas Energy plc

Tel: +44 (0)20 7993 9899

Stephen Bowler, Chief Executive Officer

Julian Tedder, Chief Financial Officer

Ann-marie Wilkinson, Director of Corporate Affairs

Investec Bank plc (NOMAD and Joint Corporate Broker)

Tel: +44 (0)20 7597 4000

Sara Hale/Jeremy Ellis/George Price

Canaccord Genuity (Joint Corporate Broker)

Tel: +44 (0)20 7523 8000

Henry Fitzgerald-O'Connor

Vigo Communications

Tel: +44 (0)20 7830 9700

Patrick d'Ancona/Chris McMahon