IGas narrows losses as Barton tests continue
ENERGY firm IGas, which carried out exploratory drilling for shale gas in Salford earlier in the winter, saw revenues increase last year.
The London-firm, which is now the biggest shale gas player by licence size after agreeing a £117m takeover of Dart Energy last month, said revenues were up 11% to £75.9m in the year to March.
Earnings before, interest, tax, depreciation and amortisation were up 6% to £34.4m, but the group made an overall pre-tax loss of £7.9m, although this was down from an £18.3m loss last time.
Most of the income is from the group’s established onshore oil producing assets but IGas is hoping to extract gas using the controversial fracking process from the shale bed under large parts of the North West. It is also active in the East Midlands.
The group 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.
Environmentalists claim fracking, which involves pumping water and chemicals deep under ground at high pressure, can pollute water supplies and the atmosphere, and its Salford site at Barton Moss became the focus of environmental campaigners.
Today IGas said it was still analysing the results of the exploratory drilling programme and the process should complete by the autumn. It expects to drill at another North West site this year.
Chief executive Andrew Austin said: “2013 has been another successful year for IGas. We continued to deliver on our strategy of becoming the leading onshore independent company developing and producing discovered hydrocarbons in Britain.
The proposed Dart acquisition puts IGas at the heart of unlocking Britain’s energy potential and demonstrates our commitment to, and confidence in, the British onshore oil and gas sector. The transaction will further strengthen 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 company ended the period with £28.3m of cash and net debt of £80.4m.
