Igas Chalks Up Progress In UK

Leading UK onshore oil and gas producer Igas Energy has reported progress at its core projects, with output remaining in line with expectations.

The company, which owns 29 fields in the UK, published an operations update on July 31, reporting average production of 2,360 boe/day for the first half, up from 2,300 boe/day in the same period a year prior.

The recently completed SR-01 well targeting the Bowland Shale formation in North Nottinghamshire yielded “very encouraging results,” Igas said. The borehole encountered a 429-metre hydrocarbon-bearing Bowland shale layer, with significant gas indications. Analysis continues with results expected in the third quarter. Igas also reported reserve updates at conventional projects in the East Midlands and Southern England.

“Production has continued in line with budget,”Igas CEO Stephen Bowler said, noting the firm was on track to meet its full-year guidance of 2,200-2,400 boe/day.

Bowler said the company was looking forward to early engagement with the new cabinet of UK prime minister Boris Johnson to discuss how UK oil and gas production could support efforts towards zero carbon emissions by 2050.

“The development of UK shale gas is compatible with the Committee on Climate Change report, with UK shale gas having at least 50% fewer pre-combustion emissions than LNG and long-distance pipeline gas,” Igas CEO Stephen Bowler said. “By the mid-2030s we could reduce our import dependency by 50% through the creation of only onshore sites.”

Cuadrilla made similar points in a statement July 30, and invited the main opposition Labour Party leader to see for himself how fracking was carried out. Jeremy Corbyn has said his party would make fracking illegal if it got to power.