Igas Energy PLC Conventional Project Update (0473B)
June 04 2019 - 2:00AM
UK Regulatory
TIDMIGAS
RNS Number : 0473B
Igas Energy PLC
04 June 2019
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.
4 June 2019
IGas Energy plc (AIM: IGas)
("IGas" or "the Company")
Conventional Project Update
IGas is pleased to announce it has received final planning
approvals and is moving to the execution phase for a waterflood
project, at its existing producing field at Scampton in the East
Midlands.
As announced in the AGM Trading Update on 14 May 2019, the
Company continues to progress projects in its core conventional
business which include additional gas monetisation and water
injection.
The Scampton Waterflood Project will convert an existing well to
a water injector to increase oil sweep and field estimated ultimate
recovery by implementing secondary recovery (water-flood) in the
western portion of the Scampton North field.
The recent D&M CPR estimated 239Mbbl of incremental 2P
(Probable Undeveloped) reserves for this project and our estimated
mid-case project economics have an IRR of over 40% and a NPV of
GBP2.5 million. The total cost of the project is c.GBP2.0 million,
the majority of which will be incurred in the next 12 months, with
resultant incremental production of c.100 bopd.
Commenting Stephen Bowler, Chief Executive, said:
"We have a number of attractive projects across the portfolio
which continue to mature as we seek to maximise returns on our
existing operations and infrastructure, and in this case are
pleased to be moving forward with a low-risk opportunity with an
estimated IRR of over 40%.
Alongside these production uplift opportunities, we also
continue to work up additional appraisal and exploration
opportunities to access new fields in our conventional
portfolio.
Projects, particularly on existing sites, offer good returns at
these oil prices with reduced risk and minimal incremental
operating costs and we look forward to announcing future projects
in due course."
Ross Pearson, Technical Director of IGas Energy plc, and a
qualified person as defined in the Guidance Note for Mining, Oil
and Gas Companies, March 2006, of the London Stock Exchange, has
reviewed and approved the technical information contained in this
announcement. Mr Pearson has 18 years oil and gas exploration and
production experience.
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 5970
Sara Hale/Jeremy Ellis/Neil Coleman
Canaccord Genuity (Joint Corporate Broker)
Tel: +44 (0)20 7523 8000
Henry Fitzgerald-O'Connor
Vigo Communications
Tel: +44 (0)20 7390 0230
Patrick d'Ancona/Chris McMahon
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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