£117m deal makes IGas UK’s biggest shale player
FRACKING firm IGas has agreed a £117m all-share deal to acquire rival Dart Energy.
IGas has shale gas licences across the North West, mainly at sites along the Manchester Ship Canal to the Mersey Estuary, and Dart is exploring sites in Cheshire at Upton Heath and Farndon.
Under the terms of the deal, shareholders of Dart, which is listed in Australia, will receive 0.08117 IGas shares for each of theirs. This values Dart at £117m and will give Dart shareholders 30% of IGas.
IGas shares are worth around 130p giving the London-based group a market value of nearly £270m. The shares were up 4p immediately after the announcement before falling back.
A statement said the boards of IGas and Dart believe the deal will create a “UK national energy champion” with the largest shale gas area under licence.
IGas is already extracting coal bed methane near Warrington, and spent the first three months of the year drilling a shale gas test site at Barton in Salford which attracted strong oposition from environmental campaigners who argue fracking – which releases gas by fracturing the shale bed – can cause air and water pollution.
IGas’ CEO Andrew Austin said: “This transaction puts IGas at the heart of unlocking Britain’s energy potential. It demonstrates our commitment to, and confidence in, the UK onshore oil and gas sector.
“This is a British success story establishing IGas as a key contributor to UK energy mix and security. The transaction further strengthens our position financially, operationally and also significantly increases our licenced acreage as we seek to unlock the untapped energy resource that exists in Britain.”
The Government is encouraging the nascent fracking industry with tax breaks in the hope it will lead to billions of pounds of investment and greater energy security.
In January French oil group Total £30m for up to two test wells in Lincolnshire where the licence is held by a consortium of Egdon Resources, Dart Energy, eCorp and IGas.
