UK's IGas Back in Black in H1

UK onshore producer IGas Energy returned to profit in the six months ending June 30, aided by higher cash flow, it reported on September 12.

Post-tax profit came in at £0.8mn ($1mn), compared with a £1.2mn loss in the first half of 2018, the company said in a statement. Revenues were up slightly at £21.2mn, versus £21.1mn a year earlier, while operating costs fell to £9.7mn from £10.3mn.

Adjusted ebitda improved to £7.7mn from £6.0mn, and IGas was able to trim its net debt to £5.9mn from £7.4mn. Production was stable, at 2,360 barrels of oil equivalent/day compared to 2,292 boe/day in 2018’s first half.

“We have had a good performance from our existing producing assets in the first half of the year and we continue to generate strong operating cash flow,” CEO Stephen Bowler said. “From the results at Springs Road, we now know we have a world-class resource and early indications are that we can attain significant gas flow from this basin.”

IGas said in March it had drilled into a rich seam of shale gas at its Springs Road site in North Nottinghamshire, and in July, the company reported “highly encouraging” core analysis results from its well. It is awaiting full analysis of the data, in order to push ahead with appraisal work.