Igas UK Well Hits Shale Gas (Update)
(Adds analyst comment at end)
UK explorer Igas struck a rich seam of gas with its Springs Road well, North Nottinghamshire, it said March 11. The well, in the prolific Bowland shale, went through over 250 metres and found "significant gas indications" both within the upper and lower Bowland and sands in the Millstone Grit sequence.
A video showing some recovered core from the well effervescing gas when immersed in water can be viewed here: https://youtu.be/dnZDrTLWiyQ and on the website at www.igasplc.com.
It said is now analysing the core sample of both shale and grit, to gain "further insight into the resource potential and shale characterisation that will be utilised for future appraisal and development of the wider East Midlands area," with an updated expected in the next quarter.
Having encountered both primary and secondary targets on prognosis it is now drilling into the tertiary target, to prove up the potential for multiple hydrocarbon bearing horizons within the Gainsborough Trough.
The rate of drilling at Springs Road was faster than expected thanks to its experience gained from Tinker Lane, where core samples are still being analysed, it said.
CEO Stephen Bowler said: "I am delighted to report that we have recovered high quality hydrocarbon bearing cores at our Springs Road site. The data gathered to date shows that there are significant prospective resources in our East Midlands acreage and is another important step for the UK onshore industry.
"There is the potential for the gas beneath our feet to contribute materially to the UK energy needs. Gas is important for our energy requirements, not least because over 80% of the homes across the country are heated by gas. These results come at a time when we are importing more and more gas from overseas and could stimulate investment in the East Midlands basin as well as improving the country's balance of payments."
Igas said mid-February that it might apply for permission to hydraulically fracture the shale rock in the second quarter, depending on the analysis of the drilling results.
Oil and gas analysts at Cantor Fitzgerald, representing junior partner Egdon Resources, said: "In our view this looks like an excellent result, and while it is too early to speculate on potential resource volumes, the thick shale section and additional shows in the Millstone Grit bode well for the development of both the wider East Midlands and Egdon’s 82,000 (net) acre position."