UK's IGas Cuts Loss and Debt

UK shale gas explorer IGas reported April 26 a net loss of £32.9mn in full year 2016, down from its £44.8mn loss in the nine months to December 2015.

Net 2016 conventional [UK] production was 2,355 barrels of oil equivalent per day and forecast to reach 2,500 boe/d in 2017. The company said it has planning permissions for three UK shale exploration wells, all within its work programme of up to $230mn all carried by Ineos and Total.

Following Kerogen’s entry as a 28% IGas shareholder paying $35m, and a share placing that raised a further $21.9m, IGas said its net debt had been reduced from $122mn at end-2017 to a much more manageable $7mn three months later.

Venture capital fund Kerogen's affiliate, Australian drill services firm AJ Lucas, owns a 45% stake in another UK shale gas explorer Cuadrilla.

One of IGas's 'nodding donkey' oil producer wells at Gainsborough in Lincolnshire, England (Photo credit: IGas)

IGas also said April 26 that its founder Francis Gugen will retire in June and be replaced as chairman by Mike McTighe, currently IGas deputy chairman. Two Kerogen directors will join IGas’s board, replacing two existing directors.

IGas said further progress on divesting its international assets was made so far in 2017, with Indonesian operations divested, licences previously held in Germany and Australia relinquished or divested, an office in Brisbane closed, and a last licence in India to be relinquished. Deregistration of its China and Vietnam interests are expected to be finalised in December 2017, said IGas.

Mark Smedley