IGas' Shale Estimates on Ince Marshes to Potentially Double
London-listed IGas Energy has said that independent estimates of pre-drilling reserves on the Ince Marshes could potentially double following further analysis of the asset.
In an update released today, the company said further analysis of the logs and samples of the marsh, which is located in the same UK basin--the Bowland shale--as Cuadrilla Resources massive shale find, could yield more than double the previous estimate. The previous estimate, given in January of this year, estimated gas-initially-in-place (GIIP) at 4.6 trillion cubic feet.
The company, which holds a 100 per cent interest in the asset, says it is now launching a process to search for farm-in partners at Ince Marshes. This partner would participate in drilling further wells at the field and would work with IGas to corroborate and develop the shale asset.
The company has also updated on its UK coal-bed methane asset and has confirmed that dewatering has begun on its third and fourth wells at Doe Green. IGas says these wells, DG-3 and DG-4, have both shown early gas but production rates for both water and gas has not yet stabilised. The company expects to update when these rates have stabilised.
Well designs are due to be finalised once analysis of the DG-3 and DG-4 wells has been completed. Export equipment for the wells has been commissioned two additional sites have been constructed with cellars and conductors set at Ellesmore Port and Irlam.
The company has also updated on its production, with a daily rate of 2,700 barrels of oil equivalent net to IGas, thanks, in large part to an oil asset that is performing as 20 per cent above expectations.
CEO of IGas Andrew Austin said the operational update highlighted the strength of both its conventional and unconventional assets.
"We are pleased with the robust levels of oil production we are experiencing, which along with the current realised oil price enhances the value of our conventional assets," he said.
"Ince Marshes-1 is a particular highlight, potentially at least doubling the independent pre-drill estimate of 4.6Tcf of shale resource. Our shale potential offers a significant opportunity for the company and to potential partners, in addition to our CBM resource base of over 300 million boe.
"The UK Government’s announcement about a new gas generation strategy and the support given in the budget to the industry are all signs that UK-sourced hydrocarbons are going to play an increasingly important role in the future energy mix of the country."