IGas told shareholders this morning it was making plans to restore the Tinker Lane site in north Nottinghamshire after drilling failed to find the Bowland shale.
A trading update from the company said the well had now been plugged and abandoned.
“Plans are being drawn up to fully restore the site to its former condition.”
The vertical well was the first of three shale gas exploration boreholes the company has permission to drill in the county. IGas said today the purpose of the Tinker Lane well was to “delineate the edge of the shale in the Gainsborough Trough basin. The statement said:
“Whilst indications of hydrocarbons were encountered within the Millstone Grit, the Bowland Shale was not present in the well.”
The statement said this well aimed to “appraise the Bowland shale in a central basin area”.
IGas also said the company’s chief operating officer, John Blaymires (62), would retire when the Misson Springs vertical well had been completed.
He joined the company in April 2010, after posts with Hess Corporation, Amerada Hess, Petroleum Development Oman and Shell Expro.
The statement said his responsibilities would be taken on by development director Ross Glover, production director Chris beard and technical director Ross Pearson. Biographies
IGas chief executive, Stephen Bowler, said:
“John has been a core member of the senior team at IGas for the last eight years and has helped to build the operational capacity we have today. We are all grateful for his valued contribution in that time and wish him well in his retirement.”
IGas released some financial figures in advance of publication of the company accounts in March. Compared with last year, average net production was up slightly, debt was slightly higher and cash balances down.
Average net production: 2018 2,365boepd (barrels of oil equivalent per day); 2017 2,335
Cash balances: 2018 £15.1m; 2017 £15.7m
Net debt: 2018 £6.4 million; 2017 £6.2m
The company said it had completed the Albury gas-to-grid project in Surrey. Gas was exported to the grid at the end of November 2018.
The sale of non-core assets to Onshore Petroleum Limited was waiting for final approval, it added.