TIDMIGAS
RNS Number : 6578M
Igas Energy PLC
17 October 2016
17 October 2016
IGas Energy PLC (AIM :IGAS)
("IGas" or "the Company")
IGas is pleased to announce the publication of the full and
final results of the Competent Persons Report ("CPR") by DeGolyer
& MacNaughton ("D&M"), the leading international reserves
and resources auditors.
The reports comprise an independent evaluation of IGas
conventional oil and gas interests as of July 31 2016, a report as
of July 31 2016 on the unconventional prospective resources and a
report as of June 30 2016 on reserves and revenue and contingent
resources.*
The full reports can be found at
http://www.igasplc.com/investors/publications-and-reports.
Conventional Highlights
D&M estimates have confirmed a continuing high conventional
reserves replacement ratio of 354% for 1P reserves and 205% for 2P
reserves for the period ending 30 June 2016.
IGas net reserves and resources (MMboe)
1P 2P 2C(3)
------------------- ---------- ----------- -----------
As at 31 Dec
2015(1) 8.31 13.33 12.67
------------------- ---------- ----------- -----------
As at 30 Jun
2016(2) 9.39 13.77 21.83
------------------- ---------- ----------- -----------
1 IGas estimates
2 D&M estimates from separate report as at 30 June 2016
3 2C additions include the 14th Round conventional fields.
The IGas 2P oil and gas reserves to production ratio (R:P) has
consequently increased from 14 at 31 December 2015 to 15 as at the
report date.
The D&M independent evaluation has also included an estimate
of 2C net contingent conventional resources of 21.8 MMboe for IGas
properties based on 5.8 Mcf/boe. These resources include oil and
gas resources within producing and undeveloped fields that can be
readily developed with infill drilling and gas monetisation
projects. Several gas monetisation projects now require only sales
agreements and final investment decisions (FID) to be able to
proceed, which will lead to future reserves additions and
incremental production.
D&M has calculated the future cashflows that can be expected
for all IGas net reserves based on production forecasts, capex,
opex and price assumptions. Despite continuing low commodity prices
and seven fields being currently evaluated as having zero reserves,
mainly due to a lack of economic viability, the 1P NPV10 estimate
is US$195 million and the 2P NPV10 estimate is US$277 million.
* The report as at June 302016 has final minor corrections to
the D&M estimates of 2C resources and NPV10 previously included
in the announcement of IGas Unaudited Results for the six months
ended 30 June 2016.
Prospective Shale Gas Resources
D&M has produced a separate independent evaluation of risked
prospective shale gas resources in the IGas East Midlands and North
West licence areas.
Using a deterministic method adopted by the British Geological
Survey and including recently awarded 14(th) Round licences,
D&M have estimated an IGas gross mean gas initially in place
(GIIP) of 221 trillion cubic feet. D&M reports an IGas gross
GIIP best estimate of 106 trillion cubic feet using PRMS
guidelines. These estimates include uncertainty in the productive
area.
After application of adjustments for productive areas and
recovery factors based on D&M's worldwide experience with
analogous shale gas basins, D&M have estimated unrisked IGas
net shale gas prospective resources of 11 trillion cubic feet.
D&M have estimated that IGas has 2.5 trillion cubic feet
(ca. 440 MMboe) of net risked shale gas resources after taking into
account an estimated geological chance of success.
Net IGas Shale Gas Units Comments
Estimates (TcF)
----------------------------- ------------ ---------------------------------
Gas in Place 102 Using BGS deterministic
method
----------------------------- ------------ ---------------------------------
Unrisked Prospective 11 Adjusted for productive
Resource area and recovery factor
----------------------------- ------------ ---------------------------------
Risked Mean Prospective 2.5 Adjusted for geological
Resource chance of success
----------------------------- ------------ ---------------------------------
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.
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
Glossary
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
Contingent Recoverable Resource - Contingent Recoverable
Resource estimates are prepared in accordance with the Petroleum
Resources Management System (PRMS), an industry recognised
standard. A Contingent Recoverable Resource is defined as
discovered potentially recoverable quantities of hydrocarbons where
there is no current certainty that it will be commercially viable
to produce any portion of the contingent resources evaluated.
Contingent Recoverable Resources are further divided into three
status groups: marginal, sub--marginal, and undetermined. IGas'
Contingent Recoverable Resources all fall into the undetermined
group. Undetermined is the status group where it is considered
premature to clearly define the ultimate chance of
commerciality.
Drill or drop - A drill or drop well carries no commitment to
drill. The decision whether or not to drill the well rests entirely
with the Licensee being driven by the results of geotechnical
analysis. The Licence will, however, still expire at the end of the
Initial Term if the well has not been drilled.
Firm well - A firm well is classified as a firm commitment to
drill a well. It is not contingent on any further geotechnical
evaluation (i.e. it is a fully evaluated Prospect).
GIIP Gas initially in place
MMboe Millions of barrels of oil equivalent
MMscfd Millions of standard cubic feet per day
PEDL United Kingdom petroleum exploration and development
licence
PL Production licence
Tcf Trillions of standard cubic feet of gas
UK United Kingdom
This information is provided by RNS
The company news service from the London Stock Exchange
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