IGas said today it expects to drill its Nottinghamshire shale gas wells in the second half of this year.
It said it is also securing sites for shale appraisal wells in north-west England.
The details emerged in IGas unaudited accounts for the year to December 2016. Link
IGas has received planning permission for wells in north Nottinghamshire: two at Springs Road, Misson and one at Tinker Lane.
Both permissions can be finalised only when legal agreements have been signed. The agreement for Springs Road is due to be concluded at the end of May, after missing three earlier target dates.
“Results from these wells will improve our understanding of the shale gas potential in North Nottinghamshire and the wider Gainsborough Trough”.
In north west England, the company said:
“IGas Lands & Planning team are in the process of securing surface location options to enable initial exploration and appraisal well applications to move forward.
“We are moving forward with site selection and pre-application preparations.”
Today’s accounts corresponded with the announcement that Philip Jackson and Tushar Kumar, two executives from Kerogen, IGas’s new investor, are to join the IGas board.
John Blaymires, IGas chief operating officer, and Julian Tedder, chief financial officer, are to leave the board, it was also revealed. Company chairman, Francis Gugen, is being replaced by the current deputy chairman, Mike McTighe.
The share price rose slightly on the day to 4.65p, up 2.88%
Key figures in the accounts
Revenue: £30.5m (nine months ending Dec 2015: £25.1m).
Explained by higher sale volume in longer accounting period.
Gross profit: £3.3m (nine months ending Dec 2015: £3.6m)
Administrative expenses: £11.4m (nine months ending Dec 2015: £6.0m).
Explained by £3m of legal and professional costs relating to refinancing and longer accounting period.
Other income: £0.7m (nine months ending Dec 2015: £5.1m)
Exploration write-off: £4.5m (nine months ending Dec 2015: £12.9m).
Explained by relinquishment of licences.
Profit on disposal of oil and gas assets: £0 (nine months ending Dec 2015: £4m).
Explained by a farm-out to INEOS.
Production: 2,355 barrels of oil equivalent per day (oepd) (target 2,400-2,600) (nine months ending Dec 2015: 2,570boepd).
Explained by reduced capital expenditure which delayed some planned production, as well as unplanned downtime at some wells.
Net acreage: 632,000 (2015: 769,000)
Net assets: £70.5m (nine months ending Dec 2015: £98.9m)
Cost of sales: £27.2m (nine months ending Dec 2015: £21.5m)
Loss before tax: £44.8m (nine months ending Dec 2015: £64.5m)
Operating loss: £16m (nine months ending Dec 2015: £56.6m)
Investments in assets: £8.8m, of which £6.5m was in conventional assets and £2.3m in shale exploration programme (nine months ending Dec 2015: £9.4 )
Operating costs: £21.1/barrels of oil equivalent (boe) (nine months ending Dec 2015: £16.1/boe).
Explained in part by the impact of lower volumes on fixed costs and higher transport costs.