IGas accounts show losses but company ready to submit drilling bid

IGas announced it would submit a planning application to drill exploratory wells in Nottinghamshire in the next quarter.

The company in its annual accounts released today said if it received consent it would expect to start drilling in the first half of next year.

IGas wants to frack for shale gas in near the village of Misson in Bassetlaw. Community action groups against fracking have been set up throughout Nottinghamshire, including at Misson and Bassetlaw. The Nottingham Post reported that an 1,800-signature petition opposing the plans was handed to the county council in January.

In a statement IGas said: “We have commenced planning consultations including a Scoping Report prior to the submission of a planning application, which we expect to submit in Q3. The planning application will be for the drilling of two exploratory wells (one vertical and one with a horizontal section). Subject to planning and permitting, we expect to drill the vertical well in H1 2016.”

The accounts show that IGas revenues were down to £58.2m compared with £75.9m the year before. Production was also down at 999,003 barrels of oil equivalent compared with 1,015,866 boe in 2014. The company made a loss of £18.5m, compared with a profit £2.3m last year.

In May, IGas announced a company restructuring, including job losses and the closure of offices in Scotland. The chief executive, Andrew Austin, left the company on 31st May. The accounts said the restructuring was expected to cost £2.8m in pay offs to departing staff, including Mr Austin.

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