Production for shale gas firm IGas remains on course
Shale gas company IGas Energy said production is in line with budget, in a trading update ahead of its annual general meeting today.
The firm, which operates drilling sites across the North West and Midlands, including Ellesmere Port and Warrington, said net production between January 1 and May 8, was 2,323 boepd (barrel of oil equivalent).
Net production for the year is still anticipated to be around 2,300 -2,400 boepd, with operating expenditure of $32.5/boe in 2018, assuming an exchange rate of £1:$1.40.
The company said work at Tinker Lane and Springs Road in Nottinghamshire is now largely complete and it remains on track to spud, or drill, the first well in the middle of this year
An application at Ince Marshes in Cheshire is on course to be submitted mid-2018.
iGas said the gas monetisation project at Albury, in Surrey, is progressing according to plan.
A well test was undertaken in April which resulted in a flow rate in line with expectations, and it remains on track for its first gas in the second half of 2018, subject to planning consent.
Other incremental production projects at Stockbridge and Welton, near Winchester, are progressing to schedule. The Stockbridge project is due for completion in July 2018 and the Welton injection project in September 2018.
Today’s statement said the firm has decided to divest some non-core assets, worth about 100boepd, to Onshore Petroleum, worth £3.14m, which will be satisfied by the provision of oil field services to IGas by OPL.
IGas chief executive Stephen Bowler said: “The advent of higher oil prices has been beneficial in terms of operating cash flow and I am pleased that the production business is delivering in line with budget and our incremental production projects are progressing according to plan.
“Momentum continues in the UK shale industry with the recent completion of the first horizontal shale gas well in Lancashire and our first appraisal well in the East Midlands is due to spud in the summer, both of which will give us a much greater understanding of potential of the shale gas resource.”
He added: “In light of recent political events, poor weather and increasing gas prices, energy security for our country becomes ever more important.
“We believe that onshore oil and gas can be a significant contributor to the energy mix over the coming years as we seek to decarbonise our economy. The next few months will be important in understanding this potential.”
