IGas upbeat despite profit slide

MAJOR North West shale gas player IGas has reported a sharp fall in half-year pre-tax profits.

The group, which is testing for shale gas in Salford and Ellesmere Port, said earnings were down from £4.6m to £1.5m in the year to September 30.

This was partly affected by the strengthening of sterling against the dollar which contributed to a 5% fall in revenues to £34.5m. But costs also rose from £14.8m to £16.1m.

Chief executive Andrew Austin said: “The six months to the end of September saw significant work undertaken to materially progress the scale and potential of our operations and position us for further growth.

“We have continued to maintain the pace of progress across our assets and, following the Dart acquisition, we are now operating an $80m gross work programme, funded by partners, to further appraise gas from shale and coal bed methane. Our forward plans on the producing assets will be shaped by the developing oil price environment.

“We anticipate drilling two further wells in 2015 which will subsequently be flow tested, subject to the necessary planning and permitting approvals. The potential of the untapped natural resources onshore offers an opportunity for Britain to increase its energy security, create jobs and support economic growth. We are excited about continuing to be part of that opportunity.”