Igas Energy PLC Annual General Meeting Trading Update (9919H)
June 14 2017 - 2:00AM
UK Regulatory
TIDMIGAS
RNS Number : 9919H
Igas Energy PLC
14 June 2017
14 June 2017
IGas Energy plc (AIM: IGAS)
("IGas" or "the Company")
Annual General Meeting Trading Update
IGas today provides the following statement in relation to
trading for the period 1 January to 13 June 2017. This update is
issued in advance of the Company's Annual General Meeting ("AGM")
which is being held at 10.30am today.
Highlights
-- Successful completion of balance sheet restructuring and fundraising in April 2017
o Experienced industry investor, Kerogen Capital, now a 28%
shareholder following its $35 million equity investment
o Further $22 million raised in placing and open offer
-- Net debt reduced from $122 million at 31 December 2016 to c.$8 million as at 31 May 2017
-- Cash flow generative at current oil prices
-- Net production averaged 2,320 boepd for the first five months
of the year. Production was marginally below budget for the period
due to necessary maintenance on a number of wells for which we are
taking remedial action, including engagement of an additional
workover rig to accelerate reinstatement of these wells. This will
have an associated impact on full year operational expenditure per
barrel. Net production for the year is anticipated to be c.2,400
boepd
-- Shale appraisal and development plan covered by up to $230 million carried work programme:
o Agreed and signed Section 106 legal agreements for the
exploratory well sites at both Springs Road and Tinker Lane.
Planning conditions now to be discharged ahead of construction
phase and commencement of drilling activity; spudding is currently
anticipated to commence in the fourth quarter of 2017
-- As previously announced, Chairman and Founder, Francis Gugen
and John Bryant are to retire and Mike McTighe to become Chairman
following the AGM, subject to shareholder approval. In addition
John Blaymires and Julian Tedder have resigned from the PLC board
effective following the AGM but will remain directors of the
operating companies and continue to hold their executive roles
Stephen Bowler, Chief Executive commented:
"We are delighted to have completed the fund raising and
refinancing in the period whilst also moving forward our
operational plans.
There continues to be volatility in the commodity and foreign
currency markets and we are keeping our costs under constant
review. Importantly, following the refinancing, we are cash
generative at current oil prices and have a low level of debt in
the business.
We continue to move our shale work programme forward, with three
wells having received formal planning approval in North
Nottinghamshire. We see further momentum building across the wider
UK shale industry as Cuadrilla and Third Energy move closer to
drilling their wells and INEOS has begun to submit planning
applications and shoot seismic across its licensed acreage. This
additional data will help us and the wider industry to further
understand the Shale prospectivity in these basins.
We look forward to an exciting second half of the year, with a
strong balance sheet enabling us to capitalise on value accretive
opportunities and rebuild shareholder value."
For further information please contact:
IGas Energy plc
Tel: +44 (0)20 7993 9899
Stephen Bowler, Chief Executive Officer
Julian Tedder, Chief Financial Officer
Ann-marie Wilkinson, Director of Corporate Affairs
Investec Bank plc (NOMAD and Joint Corporate Broker)
Tel: +44 (0)20 7597 4000
Sara Hale/Jeremy Ellis/George Price
Canaccord Genuity (Joint Corporate Broker)
Tel: +44 (0)20 7523 8000
Henry Fitzgerald-O'Connor
Vigo Communications
Tel: +44 (0)20 7830 9700
Patrick d'Ancona/Chris McMahon
This information is provided by RNS
The company news service from the London Stock Exchange
END
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