IGas pulls out of oil and gas licences in the East Midlands and the Weald

Bothamsall IGas Richard Croft

Bothamsall oil site © Copyright Richard Croft and licensed for reuse under

IGas announced today it was withdrawing investment from 10 oil and gas licences in the East Midlands, southern England and north east Scotland.

According to 2017 data, the licences include several of the company’s lowest-producing oil fields.

IGas said it had signed a sale and purchase agreement with Onshore Petroleum Limited, a company formed in 2017 with a single director.

The deal is expected to be completed in the second half of 2018, IGas said.

In a statement in advance of today’s annual general meeting, IGas said it was divesting 100% of its interest from licences PL220, ML3, ML6, ML7, PEDL70 and PL205. Four of these licences are in the Nottinghamshire and Leicestershire, one in Hampshire and one in West Sussex.

IGas said it was also divesting 50% from PEDL158, an onshore licence on the Caithness coast in north east Scotland, and the adjoining offshore licence, P1270.  The remaining licences, PEDL235 and PEDL257, both in Surrey, will see IGas divest by 25%.

The company said:

“As we continue to identify and evaluate the future potential of our existing producing assets, we have agreed to divest certain non-core assets representing c.100 boepd [barrels of oil equivalent per day] to Onshore Petroleum Limited (OPL).

“A Sale and Purchase Agreement has been signed for a consideration of £3.14 million, which will be satisfied by the provision of oil field services to IGas by OPL.”

Onshore Petroleum Limited is based in Newark, Nottinghamshire. The single director is John Palmer, described as a drilling supervisor. He is also a director of five other active companies, including P W Well Services, all based in Newark.

The agreement has to be confirmed by the Oil & Gas Authority. Environmental permits for well sites in the licence areas will have to be transferred to OPL and need agreement from the Environment Agency.

IGas is the second biggest onshore oil producer in the UK. In 2017, its fields produced 132,910 m3 of oil, 14% of the UK total. It was, however, a long way behind the largest producer, Perenco Oil & Gas, which produced 817,534m3 during 2017, or 84% of the total.

  • The statement also said IGas expected to spud its first shale gas well in Nottinghamshire and submit an application for Ince Marshes in Cheshire, both in mid-2018.

More details on licences

East Midlands



Licence PL220 in Nottinghamshire and Leicestershire. Map: UKOGL

  • 100% held by IGas. Divesting 100%
  • Licence issued August 1982. Due to end 2026
  • Licence comprises two blocks: one NE of Loughborough and one NW of Melton Mowbray. The western block includes the Rempstone oil field. In 2017, produced 505m3 – under 1% of IGas total oil production. The eastern block includes the Long Clawson oil field, which produced 1199m3, or about 1% of the IGas total.



Licence ML3 in Nottinghamshire. Map: UKOGL

  • 100% held by IGas. Divesting 100%
  • Licence issued August 1982. Due to end 2026
  • Licence is north of Newark and east of Clumber Park, where Ineos is challenging the National Trust over the right of access for seismic testing. It includes the Egmanton field, which produced 427m3 in 2017, less than 1% of the IGas total oil production.



Licence ML6 in Nottinghamshire. Map: UKOGL

  • 100% held by IGas. Divesting 100%
  • Licence issued 1964. Due to end 2040
  • Licence adjoins Clumber Park (see above). There are more than 60 well sites in the licence area, including the Bothamsall field, which produced 1,821m3 in 2017, 1.4% of the IGas total oil production.



Licence ML7 in Nottinghamshire. Map: UKOGL

  • 100% held by IGas. Divesting 100%
  • Licence issued 1964. Due to end 2040
  • Licence is east of Retford and north east of Clumber Park. It includes the South Leverton field, the lowest producing IGas field. It produced a total of 20m3 I 2017, less than 0.0% of the IGas total oil production.

Southern England



Licence PEDL70 in Hampshire. Map: UKOGL

  • 53.6% held by IGas. Divesting 100%
  • Licence granted 2000. Due to end 2031
  • Licence is east of Winchester. It includes the Avington well, which produced 2,028m3 or 1.5% of IGas total oil production in 2017. Other interests in the licence are Aurora (8.33%), Corfe Energy (5%), Egdon Resources (28%) and UKOG (5%)



Licence PL205 in West Sussex. Map: UKOGL

  • 100% held by IGas. Divesting 100%
  • Licence started 1982. Due to end 2026
  • Licence is south of Pulborough, largely in the South Downs National Park. It includes the Storrington oil field, which produced 1,963m3 in 2017, 1.5% of the IGas total. Planning permission was granted in 2017 for another 15 years of oil production.



Licence PEDL257 in Surrey. Map: UKOGL

  • 100% held by IGas. Divesting 25%
  • Licence issued under the 14th round in 2016. Due to end 2046
  • Licence is north of East Grinstead and includes one non-producing well site at Lingfield. It is next to licences, PEDL137 and 246 operated by Horse Hill Developments Ltd, the company behind the so-called Gatwick Gusher wellsite near Horley.



Licence PEDL235 mostly in Surrey. Map: UKOGL

  • 100% held by IGas. Divesting 25%
  • Licence issued in 2008, with an extended initial term due to expire in June 2018. Licence due to end 2039.
  • Licence is east of Haslemere in Surrey and north of the adjoining PEDL234 which includes the UKOG Broadford Bridge site. PEDL235 includes the Godley Bridge-1 well, a non-producing Portland sandstone gas discovery.




  • 100% held by IGas. Divesting 50%
  • Licence granted 2004, originally to Reach Exploration (North Sea) Ltd. Due to end 2035
  • Licence is on the Caithness coast, south of Wick in north east Scotland.


  • 100% held by IGas. Divesting 50%
  • Licence granted 2005. Due to end 2031.
  • Offshore licence adjoining PEDL158 (see above)


23 replies »

  1. OK so Igas are focussing on areas where they feel exploration can best be progressed. Good for them. They are in the business of efficiency and profitability – yes really.

    A quote from the recent Igas statement….

    “In light of recent political events, poor weather and increasing gas prices, energy security for our country becomes ever more important. We believe that onshore oil and gas can be a significant contributor to the energy mix over the coming years as we seek to decarbonise our economy. “

    In other words they see onshore gas, both conventional and unconventional as part of a mix of energy sources. There is recognition from Central Government in particular that a variety of energy sources is the key to energy security whilst balancing environmental factors, energy security and reliability, and cost to the bill payer.

    • You point is well put shalewatcher and true, however, as we all know shale gas cannot be balanced on environmental factors.
      It appears the governance are putting their eggs in the LNG basket.

    • In 2016 average monthly production from 8 of the 25 onshore oil wells operated by Igas produced less than 12 barrels a day.

      Their 1 onshore gas well produced nothing in 2016

      Time to offload non viable sites and let others take responsibility for long term abandonment.

  2. There has plenty of references to consolidation by a number of companies, as they start to focus on core activity.

    Simply an indication this is the time to do it. With oil and gas prices high, and going higher, an obvious time to divest of the assets which are marginal to the core activity.

    • In a perfect world Martin, this is a valid statement; however we all know what world we live in.

      So IGas who recently restructured and revalued their share to appear more profitable [real share price 85 divided by 200], when oil prices rise start to sell their wells when they need the revenue most; If these wells are indeed marginal?

      I would follow the paper trail of this 11 month old, non revenue producing, company ‘Onshore Petroleum Limited’ and it’s director Martin and you may see a different picture….

  3. You obviously missed the bit about 100 boepd, Sherwulfe.

    It doesn’t matter what the oil price is if these assets are producing so little. You do understand revenue is output times price?

    I know you do not see the capitalist world as anywhere near perfect, but it is the world we live in.

    Third Energy might even find a buyer!

  4. Yep, don’t need to.

    Ever run a garage sale? I suspect a lot of the two thirds will have, and can understand how to dispose of items surplus to requirement
    at the right time that may be of value to someone else eg. garden seats over the recent Bank Holiday. Others, amongst the one third, will have missed the opportunity whilst they attempted to excite their buddies.

  5. Lost for links?

    Try looking at the Igas share price. Seems that quite a few do understand some economics.

  6. Doubt you’ve ever had the ***** to invest in the stock market Sher so move on old chap.

    • ******* **** we do have our pants in a twist tonight.
      If you want to gamble your money away, feel free; would have better odds, however doing the lottery [and no poor unsuspecting pensioners harmed in the making of that film}

  7. If the investors are “poor unsuspecting pensioners” then it would be a bit of a surprise! Perhaps they might be Warren Buffet?

    Both are fantasy, in respect of Igas, but that’s the parallel universe that has to be created to make an anti case. The anti truth followed by the anti depressants.

    Back in the real world the sun is shining and my poor unsuspecting pensioner wife has some plastic she wishes to bash. Enjoy your day, too.

  8. bet the people who make up all this martin collyer fiction are having quite a laugh at their little in joke of regularly mentioning the real world

  9. Sorry to disappoint you hrb (is that the three of you?) but I am real, living in the real world and part of the two thirds. Interesting little defensive measure attempted there, but no cigar. But I enjoyed the compliment that a whole team is required to produce my output!

    Yes, the real world where there will be many more poor unsuspecting pensioners who lost their money installing solar panels (see recent Barclays case) and many more who will have lost money investing in M&S over the past few years. The real world where today’s forecast is for oil to reach $100/barrel.

    Where the real truth is important and the anti truth remains in 1984.

  10. “No wonder it is not popular”!!!

    Neither was the Internet, until it was up and running.

    Competition should not be feared, John. Unless you have put all your eggs in one basket.

    • ‘Neither was the Internet, until it was up and running.’ – where did you get that little ditty of baloney from? The internet was built for the US military; don’t think popularity came into it; snigger.

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