IGas developing 5-year shale plan while slashing costs

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Source: DollarPhotoClub

UK shale operator, IGas, has announced that it is working on a five-year development plan for shale gas projects in the North West and the East Midlands.

The energy company, which sold a 50 per cent interest in seven shale gas licences in the North West of England along with its Scottish interests to the Swiss chemical giant Ineos last week, is currently working with its partners to optimise a five year shale gas development plan. The plan is expected to include seismic acquisition, multi-well drilling, hydraulic fracturing and early commercialisation, and is to be funded with as sum of close to $285 million from its partners, which include Total E&P UK Ltd, GDF Suez E&P UK Ltd and Ineos.

Following the deal with Ineos, IGas has entered reorganisation which includes plans to cut more than 25 per cent of its 200-strong workforce and close its office in Stirling – formerly of Dart Energy which IGas bought out in May 2014 – to reduce costs in the wake of the fall in oil prices.

In the trading update on 8th May, the company said it was cutting costs “in light of the prevailing oil price environment”,

Production in the year to 31 March averaged 2,737 barrels of oil equivalent per day, marginally below the figure for 2013-14.

Also, IGas’s co-founder and chief executive Andrew Austin has stepped down from its role as chief executive, replaced by chief financial officer Stephen Bowler. The company announced that a recruitment process has now begun to hire a new chief financial officer.

“I have been at IGas for more than 10 years,” Austin said in a statement. “The announcement, yesterday, of the completion of the transaction with Ineos means that the company is entering a new phase of execution, well-funded by its partners and with a stable production base.”

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