IGas Completes Sale of Indonesia Coal Bed Methane Asset

IGas Energy has completed the sale of its interest in Sangatta West CBM Inc under a share transfer agreement with Ephindo International CBM Holding Inc.

In connection with the sale IGas has made an application to the London Stock Exchange for an additional listing of 1,767,220 ordinary shares of 10 pence each to trade on the AIM market of London Stock Exchange.

Completion is expected to take place on May 13, 2016 and upon completion IGas will have disposed of its remaining interest in Indonesia.

Dart Energy, which was acquired by IGas, farmed into the Sangatta West block in eastern Kalimantan in February 2009 for a 24 percent working interest and was the joint operator with Ephindo (24 percent), a privately held Indonesian CBM company. Pertamina, the Indonesian national oil company, holds the remaining 52 percent interest in the block. The block originally covered an area of 1,301 km2, but has since been reduced to 1,168 km2 following a 10 percent mandatory relinquishment.

According to Ephindo's website, Sangatta is the first CBM PSC in Indonesia to have publicly certified reserves and resources. Recoverable reserves of 38 bcf (proven, probable and possible) and contingent resources of 273 bcf (2C recoverable) has been estimated. In addition, the larger western sub-block is assessed to have prospective resources of 192 bcf (best estimate, recoverable).