RNS Number : 6874O
Igas Energy PLC
11 February 2021
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
11 February 2021
IGas Energy plc (AIM: IGAS)
("IGas" or "the Company")
Trading and Reserves Update
IGas provides an operational, reserves and financial update for
the year ended 31 December 2020. Final results for the year are
expected to be announced on 7 April 2021. The information contained
in this statement has not been audited and may be subject to
-- Net production averaged 1,907 boepd for the year, within
guidance, while operating costs for the year were c. $33/boe (at an
average 2020 exchange rate of GBP1:$1.29).
-- We anticipate net production of between 2,150-2,350 boepd and
operating costs of c.$32/boe (assuming an exchange rate of
GBP1:$1.35) in 2021, albeit subject to the ongoing challenges that
-- Welton and Scampton waterflood projects are now on line and
in the commissioning stage. Both projects were completed within
budget with production uplift expected to be realised during 2021
with a maximum anticipated, incremental production rate of 100
bbls/d for Scampton and 120 bbls/d anticipated for Welton. The
completion of these two projects has converted 840 Mboe of 2P
reserves from undeveloped to developed as per D&M 2020.
-- Geothermal - GT Energy
o Stoke-on-Trent build out of heat network delayed due to
impacts of COVID-19:
-- Planning decision expected before Easter 2021;
-- Exploring with Engie a proposal to deliver geothermal
district heating project in Stoke-on-Trent;
-- Ongoing discussions with Government regarding future
financial support beyond the closure of the Non-domestic Renewable
Heat Incentive to new projects on 31 March 2021.
o Growing development pipeline of potential projects in
Newcastle, Crewe, and Southampton.
-- Hydrogen - Further to the announcement in October 2020 of a
partnership with BayoTech, a manufacturer of modular steam methane
reformation equipment, the evaluation of candidate sites is
underway and we expect to advance projects in 2021.
The Company announces today key highlights from its reserves and
resources of its conventional oil and gas interests, as at 31
December 2020, from a Competent Persons Report (CPR) carried out by
DeGolyer & MacNaughton (D&M), a leading international
reserves and resources auditor.
IGas Group Net Reserves & Contingent Resources as at 31(st)
Dec 2020 (MMboe)*
1P 2P 2C
Reserves & Resources as at 31(st) Dec 2019 10.55 16.05 19.51
Production during the period (0.68) (0.68) -
Additions & revisions during the period 1.87 1.75 0.84
Total change during the period 1.19 1.07 0.84
Reserves & Resources as at 31(st) Dec 2020 11.74 17.12 20.35
-- 2P reserves replacement 257% (1P 275%)
-- 1P NPV10 of $150 million: 2P NPV10 of $204 million*
*based on forward oil curve of: 2021 $53/bbl; 2022 $56/bbl; 2023
$58/bbl; 2024 $59/bbl;2025 $62/bbl (for full price deck see
The full report will be uploaded to
https://www.igasplc.com/investors/publications-and reports early
-- RBL redetermination exercise concluded in December 2020
confirming $31.7 million (GBP24.0 million) of debt capacity and
current headroom of $11.7 million (GBP8.9 million).
-- Total cost savings in 2020 of GBP0.6 million, further GBP1.0 million to be realised in 2021.
-- The Company incurred net cash capex of GBP6.0 million in 2020
and expects net cash capex for 2021 to be GBP4.7 million.
-- As at 31 December 2020, the Group had hedged a total of
370,000 bbls for 2021 at an average floor price of $44/bbl using a
mixture of swaps and collars.
-- Cash balances as at 31 December 2020 were GBP2.4 million with net debt of GBP12.2 million.
Stephen Bowler, Chief Executive, commented:
"Despite the significant challenges that 2020 presented, we have
continued to make good progress in a number of key strategic areas.
We delivered production within guidance, commissioned our
waterflood projects, which will bring increased production in 2021
and beyond and completed a significant transaction with the
acquisition of the geothermal energy developer, GT Energy.
The D&M CPR results are very encouraging and show that we
have proven reserves of over 11 MMboe and a continuing high
reserves replacement of over 250%, demonstrating the significant
value and upside that remains in our conventional portfolio.
The safety of our people, contractors and the communities we
work in remains at the forefront of our thinking against the
backdrop of the ongoing impact of COVID-19."
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 20 years' oil and gas exploration and
For further information please contact:
IGas Energy plc Tel: +44 (0)20 7993 9899
Stephen Bowler, Chief Executive 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/Virginia Bull
BMO Capital Markets (Joint Corporate Broker) Tel: +44 (0)20 7236 1010
Jeremy Low/Tom Rider
Canaccord Genuity (Joint Corporate Broker) Tel: +44 (0)20 7523 8000
Henry Fitzgerald-O'Connor/James Asensio
Vigo Communications Tel: +44 (0)20 7390 0230
Patrick d'Ancona/Chris McMahon /Charlie Neish
GBP The lawful currency of the United Kingdom
$ The lawful currency of the United States of America
1P Low estimate of commercially recoverable reserves
2P Best estimate of commercially recoverable reserves
3P High estimate of commercially recoverable reserves
1C Low estimate or low case of Contingent Recoverable Resource quantity
2C Best estimate or mid case of Contingent Recoverable Resource quantity
3C High estimate or high case of Contingent Recoverable Resource quantity
AIM AIM market of the London Stock Exchange
boepd Barrels of oil equivalent per day
bopd Barrels of oil per day
GIIP Gas initially in place
MMboe Millions of barrels of oil equivalent
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 email@example.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
(END) Dow Jones Newswires
February 11, 2021 02:00 ET (07:00 GMT)
Igas Energy (LSE:IGAS)
Historical Stock Chart
From Dec 2021 to Jan 2022
Igas Energy (LSE:IGAS)
Historical Stock Chart
From Jan 2021 to Jan 2022