Igas Energy begins farm-in process

AIM-quoted coal bed methane (CBM) gas producer IGas Energy has begun a formal process to find a farm-in partner for the Bowland Shale prospect in Cheshire in a bid to accelerate the development of what is a potentially significant resource base.

The company's Ince Marshes well has previously demonstrated the presence of the Bowland shale, which has the potential to at least double the independent pre-drill estimate of gas initially in place. Logs and samples from this well are being analysed.

The firm's Chief Executive Officer Andrew Austin said: "The Bowland Shale offers a considerable addition to our existing conventional and unconventional resources and its potential materiality represents an opportunity for both the company and future partners.

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"We have already received a number of expressions of interest from world-class companies to partner with us for what looks to be a highly significant opportunity. We will now move forward and find the right partner with the appropriate complementary skills and resources to work with us during this exciting project.

"The UK government's announcement about a new gas generation strategy and the support given in the budget to the industry are all signs that UK sourced hydrocarbons are going to play an increasingly important role in the future energy mix of the country."

The share price rose 4.76% to 66p by 12:04.

NR