UK Shale Firm IGas Back in the Black

UK onshore producer IGas is out of the red and says it is progressing shale gas developments.

Funded in the near-term by a $240mn carry by fellow explorer Ineos on its shale gas work, IGas said its Springs Road and Tinker Lane drill site construction in Nottinghamshire is ongoing, and on track to spud first well mid-2018. Fracking consent was not sought on either site. "These wells will form the foundation of a wider development in the East Midlands with the mid-term focus moving to a pilot development in the Gainsborough Trough, leveraging our existing long standing operations in the East Midlands," said CEO Stephen Bowler.  Elsewhere IGas also expects to file its application to frack for shale at Ince Marshes in Cheshire in northwest England in mid-2018.

It said rival Cuadrilla’s shale drilling results to date have been encouraging, and that “2018 is a key year for UK onshore development.” It cited the closure of gas storage as underpinning continuing demand in the UK

IGas will appeal an adverse planning decision at Ellesmere Port also Cheshire (non-shale gas). Meanwhile its small fast-track conventional gas development at Albury in Surrey, southern England is due for completion this November.

The company made a net profit after tax of £15.5mn ($21.7mn), reversing a £32.9mn net loss in 2016, and said it positively benefited from a gain on capital restructuring, a higher tax credit, and much lower administrative and finance costs.  Net 2017 production of around 2,335 barrels of oil equivalent is expected to remain stable into 2018 (2,300 -2,400 boe/d).

(Banner photo showing a UK shale drillrig is courtesy of Cuadrilla)