IGas has estimated it could produce fracked gas for three million homes within 12-18 months if the fracking moratorium was lifted.
The company, in its annual accounts, based this on five well pads with a total of 80 wells.
But it said this would need “the right government support” to rapidly accelerate the development of shale gas.
IGas has welcomed the government’s review of shale gas science, announced yesterday.
Chief executive, Stephen Bowler, said today:
“We welcome … the opportunity to demonstrate how shale gas can provide safe, secure and affordable energy for the UK. We believe that expediting shale gas development will help alleviate the recent supply issues and high prices, alongside reducing emissions through to the replacement of imported gas.”
IGas said it an estimated 93 trillion cubic feet of shale gas accessible from its almost 300,000 acres of licences.
But the company currently has no shale gas sites with planning permission. The Springs Road site at Mission, in Nottinghamshire, was refused an extension last year. Its existing vertical well is due to be sealed this year.
Unlike ministers, IGas predicted today that UK shale gas resources could reduce gas prices.
It also said today that UK shale gas could reduce the country’s carbon footprint by replacing imports, improve the balance of payments and country’s tax revenues, and create jobs.
The accounts said that shale cores from the company’s Springs Road, Misson site in Nottinghamshire, predicted an estimated 630 billion cubic feet of gas per square mile:
“If applied to all our East Midland’s acreage that would imply over 250 TCF of gas in place. Even at a conservative 10% recovery factor, 27 TCF of gas would satisfy the UK’s requirements for nine years, from our acreage alone.
“If the UK Government were to lift the moratorium and allow activity to proceed through permitted development we have the potential to deliver 5 production well pads, with each pad having up to 16 wells, which would supply 3 million homes with initial production within 12-18 months. Total production is estimated at c.750 BCF from these 5 production pads.”
Key figures for year to end of December 2021
Today’s accounts showed a rise in revenue and operating cash flow and a reduced loss before tax, compared with the year to December 2020.
Revenue: £37.9m (2020 £21.6m)
Adjusted Earnings before tax, depreciation and amortization: £5.9m (2020: 4m)
Loss after tax: £6m (2020 £42.1m)
Operating cash flow: £7.4m (2020 £3.3m)
Cash and cash equivalents: £3.3m (2020 £2.4m)
Investment in assets: £4.8m (2020 £8.4m)
Average net production: 1,962 barrels of oil equivalent per day
Underlying operating costs: $37/barrel of oil equivalent
Anticipated net production in 2022: 2,000 boepd
Anticipated operating costs in 2022: $38.boe