IGas declared a loss of £19.3m for the six months to the end of September, according to results published today. The figure compares with a loss of £3.8m for the same period a year ago.
The results also revealed that the company’s revenue fell to £17.6m from £34.5m for the same period in 2014.
The company, which has submitted a planning application for shale gas exploration at Misson in Nottinghamshire, said it was looking for “a number of” sites to carry out hydraulic fracturing.
The IGas share price closed up slightly at 17.25p.
A planning application for vertical and horizontal shale gas wells at Springs Road, Misson, Bassetlaw, in PEDL140, is currently under consultation. IGas said if planning permission were granted it would operate the wells on behalf of Total, Egdon and eCorp Oil and Gas UK ltd. The company said it expected to begin drilling in summer 2016, subject to permissions. The application is for exploration not fracking.
IGas has submitted a scoping request to Nottinghamshire County Council to drill a single vertical shale gas exploration well at Tinker Lane, between Blyth and Barnby Moor, in Bassetlaw, in the adjoining licence block, PEDL200.
IGas said it had acquired 3D seismic data covering 110km2 by the beginning of November. It said it expected to complete processing and interpretation of the data by the end of the first quarter of 2016.
During the period covered by the results, Trafford Council granted planning permission for coal bed methane production at Davyhulme in PEDL193 to continue for up to 25 years.
The IGas chief executive officer, Stephen Bowler, said: “We are in the process of identifying a number of sites for further appraisal drilling and hydraulic fracturing of the wells to determine flow rates and assess commerciality.”
The results did not refer to IGas court action which secured a possession order for land earmarked for shale gas exploration at Upton, near Chester, currently occupied by an anti-fracking camp. The company and two landowners have permission to evict the camp on 4th December 2015.
On 3rd November, Surrey County Council validated IGas’s planning application (SCC Ref 2015/0230) for the retention of the Albury wellsite, four miles from Guildford, for 15 years for the production of compressed natural gas and electricity. A public consultation continues until 14th December.
The consultation on an IGas application (SCC Ref 2015/0170) to retain and extend the Bletchingley Central and Bletchingley 2 well sites for the production of hydrocarbons for 15 years ended on 28th September. The application is expected to be decided by a planning officer, not Surrey County Council’s planning committee.
IGas said it had drilled two of three planned sidetrack wells at its oil production site at Stockbridge. The first well is due to be tested shortly, the company said. The rig is now being mobilised for the third well.
The results gave more details of IGas’s farm-out deal with INEOS.
Under the agreement, INEOS acquired 50% interest in IGas licences in PEDLs 147, 184, 189 and 190 and 60% interest in PEDLs 145, 193 and EXL 273, all in north-west England.
INEOS will assume operatorship imminently of PEDLs 145, 193 and EXL273, IGas said. PEDL145 includes the Doe Green site in Warrington and PEDL193 includes the Barton Moss site in Salford.
INEOs also acquired IGas’ entire working interest in PEDL133 in central Scotland and will become the operator. In East Midlands INEOS acquired 20% interest in PEDLs 012 and 200.
INEOS made a cash payment of £30m and will provide a future work programme of up to £138m gross, of which IGas’ share is expected to be £65m, the results said.
IGas also revealed it had sold its Australian licenses on 29th October 2015 and the majority of its Indonesian licences on 20th November 2015.