THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.
27 June 2019
IGas Energy plc (AIM: IGas)
("IGas" or "the Company")
Springs Road SR-01 Shale Exploration Well Results
IGas is delighted to announce highly encouraging core analysis results from its SR-01 exploration well at Springs Road in North Nottinghamshire. The well is a significant step forward in the development of shale gas in the East Midlands.
The Springs Road well was drilled as a vertical, cored exploration well in PEDL140 in North Nottinghamshire in the centre of the Gainsborough Trough basin. The well sought to assess three target zones: the Bowland Shale; the Millstone Grit and the Arundian Shale. All three targets were encountered, with 429m of hydrocarbon bearing shales encountered within the primary target, the Bowland Shale.
IGas acquired 147 metres of core within the Bowland Shale, the first extensive core sample from this basin, which has subsequently been analysed by Stratum Reservoir (formerly Weatherford Labs) in their laboratories in both the UK and the USA.
The results from core analysis are extremely positive and confirm that a significant hydrocarbon resource is present in the Gainsborough Trough.
· Total Organic Carbon (TOC): 2 - 7 %, average of c. 3 %
· Thermal maturity (Tmax): Average of 464°C (wet gas to dry gas window)
· Total Porosity: 2 - 9 %, average of 4 %
· Gas Content: 24 - 131 scf/ton, average of 71 scf/ton
· Average Clay Content: c.30 wt.%
The key characteristics of the Bowland Shale in SR-01 compare favourably to commercial shale operations observed in North America such as the Permian and the Marcellus. The core results indicate a mature, organic rich source rock with good porosity confirming favourable gas resource density. In particular, the low clay content is encouraging and an indication that hydraulic fracturing of the rock should be effective.
The analysis conducted will help delineate the resource potential and help refine the subsequent appraisal programme. IGas, working with its joint venture partners, will now consider the attributes of the data set in order to commence planning for both the appraisal programme and pilot development within the Gainsborough Trough, including redefining the basin model.
We intend to make a further announcement and full technical presentation of the results, including comparison with analogous US shale plays in the third quarter of 2019.
Commenting IGas CEO, Stephen Bowler, said
"This positive dataset is highly promising and materially advances our understanding of the hydrocarbon resources contained within the shales in the Gainsborough trough where IGas holds a large acreage position. We were particularly pleased with operational performance during drilling leading to the well costs coming in c.20% under budget.
The independent Committee on Climate Change recently reported that by 2050 we will still require some 70% of the gas we currently consume but unless we develop our domestic resources, we will need to import 86% of that gas from overseas.
These results demonstrate that within the East Midlands we potentially have the resources to produce gas, creating jobs and tax revenues whilst reducing our greenhouse gas emissions."
Qualified Person's Statement
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/James Asensio
Vigo Communications
Tel: +44 (0)20 7390 0230
Patrick d'Ancona/Chris McMahon