IGas Energy has commenced construction of its third well at Doe Green (DG-3), part of the Company's accelerated programme to convert its resources into reserves and bring commercial production onstream.

The Doe Green site located between Warrington and Widnes has been steadily producing gas and generating electricity for over two years from a pilot well DG-2.

IGas Energy has also signed a second drilling contract. The BDF Rig 28 has been secured for a four well programme, beginning at DG3. This well is expected to spud in mid-July.

BDF, and its Boldon Drilling and BB Drilling divisions, is the UK's onshore drilling contractor and has carried out Coal Bed Methane ("CBM") drilling not only in the UK but also in Belgium and Spain.

DG-3 will be the first well drilled under the accelerated drilling programme announced with IGas's final results in May this year and will involve drilling one lateral well and subsequent branches off that lateral well into a different seam to the existing producing well at DG-2. Site construction works have begun and two cellars have been constructed and the conductors are in the process of being set. Production facilities to deal with the anticipated increased production from the site are in the process of being upgraded

Andrew Austin, CEO, IGas Energy, said: "This is the first of a multi well programme over the next nine months and marks the start of a step change in activity for IGas Energy. We have had excellent results from our pilot site at Doe Green and look forward to drilling soon beginning at DG-3. We are working with BDF again, a rig and crew that we have worked successfully within the past and know well."

Tags: IGas Energy