IGas, one of the leading producers of onshore hydrocarbons in the UK, has announced interim results for the six months ended 30 September.
The company noted further progress at its coalbed methane operations, including its project at Barton Moss in northwest England.
The 1.8 acre site north of Barton Moss Road, Salford, has seen substantial drilling activity. IGas reported that Barton Moss well results support the firm’s reservoir model and will help refine the company’s appraisal programme.
The company noted that well operations have been “conducted safely, environmentally responsibly and within the anticipated timeframe”.
This exploration well encountered the coal measures at anticipated depths and successfully intersected the secondary target of the Dinantian limestone to calibrate the seismic data and in doing so, the well also found a package comprising the Sabden and Bowland Shale formations.
The well has now been suspended and demobilisation of the rig and equipment has taken place.
Meanwhile, IGas’ Doe Green pilot CBM site continues to produce gas and generate electricity. All three production wells, each of which is testing a separate seam, demonstrate that gas is flowing from the seams.
IGas also noted that its CBM exploration well at Ellesmere Port was spudded on 15 November and drilling continues at the site.
The company also confirmed the successful completion of the Dart Energy acquisition. The integration of Dart Energy – a leading producer of CBM in the UK – is “on track” according to IGas.
Gross profit for the six months stood at £12.5 million – down from £16.3 million in 2013. IGas has a net debt of £80.8 million.
Commenting on the announcement, Andrew Austin, CEO of IGas, said: "The six months to the end of September saw significant work undertaken to materially progress the scale and potential of our operations and position us for further growth.”
“We have continued to maintain the pace of progress across our assets and, following the Dart acquisition, we are now operating an $80 million gross work programme, funded by partners, to further appraise gas from shale and coal bed methane. Our forward plans on the producing assets will be shaped by the developing oil price environment,” Austin continued.
“We anticipate drilling two further wells in 2015, which will subsequently be flow tested, subject to the necessary planning and permitting approvals,” Austin added. “The potential of the untapped natural resources onshore offers an opportunity for Britain to increase its energy security, create jobs and support economic growth. We are excited about continuing to be part of that opportunity."
IGas noted that it continues to see CBM as “inherently safer” than conventional gas reservoirs. It also said that “The decline in conventional gas production in the North Sea and an increased understanding of exploitation techniques have resulted in greater interest in CBM in the UK. Natural gas from coal has the potential to be an important new source of energy for this country.”
Written by Sam Dodson
Read the article online at: https://www.worldcoal.com/cbm/26112014/igas-announces-interim-results-cbm152/