IGas said results from its Springs Road exploration well in Nottinghamshire were “highly encouraging” and a “step forward for shale gas development in the east midlands”.
In a statement to investors this morning, the company said the core analysis confirmed “a significant hydrocarbon resource in the Gainsborough Trough”.
But the statement did not give details of plans for a side-track well at the site near the village of Misson nor any future application to frack.
A further announcement and full results was promised in the period July-September 2019. The company also said it would begin planning the appraisal programme and pilot development for the area.
The Springs Road well encountered the three targets of Bowland Shale, Millstone Grit and Arundian Shale, IGas said.
The statement added that the characteristics of the Bowland Shale at Springs Road compared favourably to that found in commercial operations in the Permian and Marcellus areas of north America
IGas said it had acquired 147m of core from the Bowland shale. The total organic the analysis of the core sample ranged from 2-7%, with an average around 3%. The average thermal maturity was 464 degrees C, in the wet gas to dry gas window. Total porosity ranged from 2-9%, with an average of 4%.
The IGas chief executive, Stephen Bowler, said:
“This positive dataset is highly promising and materially advances our understanding of the hydrocarbon resources contained within the shales in the Gainsborough trough where IGas holds a large acreage position.
“These results demonstrate that within the East Midlands we potentially have the resources to produce gas, creating jobs and tax revenues whilst reducing our greenhouse gas emissions.”
IGas shares closed up 5.67% at 57.8p.