IGas Acquires Caithness Oil to Expand North Sea Assets

UK’s IGas entered into a non-binding agreement with Caithness Petroleum to acquire licences in North Sea.

‘Under the terms of the HOA (Heads of Agreement), IGas will acquire100% interests in the licences, located in the northern coastal area of the Inner Moray Firth,’ reads a note released on Monday by the company. 

The licences cover also the Lybster field, discovered in 1996 by Premier Oil and put into production in May 2012. It was producing approximately 200 barrels of oil a day and some gas prior to being temporarily shut-in for a routine work-over.

“I am pleased we have managed to secure this opportunity to increase our existing production and one that offers significant upside potential,” commented IGas CEO Andrew Austin.

IGas would pay £8.95 million, through the allotment of 7,789,382 ordinary shares.