IGas Announce Unaudited half year results to 30 June 2017

Operational Summary · Average production 1H 2017 was 2,326 boepd (1H: 2016 2,299 boepd) with operating costs of $28.5/boe (FY 2016: $27.5/boe) · Anticipated average production for 12 months to 31 December 2017 is c.2,250 boepd, due to maintenance. We expect to exit 2017 at c.2,500 boepd · Investment in conventional portfolio to underpin production of 2,500 boepd and operating costs of $25/bbl in the medium term o Multiple incremental projects with attractive return potential identified and progressing · Good progress on our East Midlands shale acreage o Tinker Lane Planning Application for exploration well approved in March 2017 o Site construction to commence for Springs Road and Tinker Lane post Nottingham County Council approval of discharge of planning conditions o Drilling activity – spudding of first well anticipated in early 2018 · Planning application submitted in North West to test Pentre Chert formation at Ellesmere Port · Planning applications to follow for appraisal drilling including flow testing in both the North West and East Midlands, with one application expected before the end of 2017 Corporate & Financial Summary · Successful completion of capital restructuring and fundraising in April 2017 o Experienced industry investor, Kerogen Capital, now a 28% shareholder following its $35 (£29) million equity investment o Further $22 (£18) million raised in placing and open offer o Net debt reduced from $122 (£100) million at 31 December 2016 to c.$9 (£7) million as at 30 June 2017 · Significant cash balances as at 30 June 2017 of £16 million · Carried work programme of up to £183 million ($238 million at June 2017 exchange rates) as at 30 June 2017; · 300,000 barrels hedged for the second half of 2017 with a floor price of $40/bbl – $45/bbl. 450,000 bbls hedged for 2018 with a floor price of $41/bbl – $46/bbl. Commenting today Stephen Bowler, Chief Executive Officer, said: “We are well funded for the future and continue to be cashflow generative at current oil prices. We now have capital to deploy in growth projects across our conventional assets, in addition to the c.US$240m carried work programme on our shale acreage. Since the capital restructuring, we have been able to bring forward an active programme of maintenance. We have also identified incremental projects that will further underpin our conventional portfolio with resultant production levels of c.2,500 boepd and operating costs of c.US$25/bbl in the medium term. We will shortly commence site construction at our two sites in North Nottinghamshire, ahead of drilling. In the North West, we have submitted an application to conduct further tests on our site at Ellesmere Port and we are developing further applications for appraisal and flow testing across our acreage in both the North West and the East Midlands. Momentum in UK shale activity continues to increase with Cuadrilla now drilling its first well at Preston New Road, Third Energy expecting to start hydraulic fracturing at its KM8 well in North Yorkshire in the next few months and INEOS having submitted further applications for shale appraisal alongside its 3D seismic acquisition programme. Alongside this activity, given the proximity to our Weald Basin acreage, we also await with interest the results from drilling and flow tests in this area. Encouragingly, there is a significant level of activity onshore UK, and over the next 12 months, the industry is expected to have over half a dozen operators either drilling or flowing wells, including a number from IGas. We look forward to the future with excitement not only for IGas, but for the wider UK onshore industry as security of energy supply and diversification of the UK energy mix becomes ever more critical.” A results presentation will be available at www.igasplc.com/investors/presentations. John Blaymires, Chief Operating Officer 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. Blaymires has more than 30 years’ oil and gas exploration and production experience. Source / More: IGas Energy plc oilandgasOil and Gas News Undiluted !!! “The squeaky wheel gets the oil” Follow us: @OilAndGasPress on Twitter | OilAndGasPress on Facebook ]]>