IGas Revised Upward Gas in Place Estimates on UK Licence

IGas, one of the companies granted a shale gas exploration licence by UK authorities, revised upwards its gas in place estimates.

According to a press release published on Monday, the company estimates that the volume of "gas initially in place” (GIIP) associated with shales in the North West could range from 15.1 trillion cubic feet to 172.3 trillion cubic feet.

Previous estimated volumes of gas in place were near 10 trillion cubic feet.

“The announcement of gas in place … supports our view that these licences have a very significant shale gas resource with the potential to transform the company and materially benefit the communities in which we operate,” said the CEO Andrew Austin.

In early May Austin predicted that indigenous shale gas extracted by hydraulic fracturing will be a feature of the British energy scene within three years.

IGas owns licences in the North West of England, an area of 300 square miles including the Bowland Shale.

The company has seen its stock rise 7.8% in the first hours of trading in London.

In April 2012 the company announced a previous estimated GIIP of 4.6 trillion cubic feet could potentially double following further analysis of the asset.