IGas Energy reported an operations update at its Ince Marches well and the acquisition of Star Energy.

Highlights •Doe Green drilling in coal completed, indicative flow rates expected by end of March •Significant shale resource encountered at Ince Marshes well •Production 15 percent above independent expert's report since completion

Commenting on the update, Andrew Austin, CEO IGas Energy said "We are pleased to announce that we have completed the coal drilling phase at Doe Green and that we have seen strong performance from the production assets following the completion of our acquisition of Star Energy. We are also very encouraged by the shale encountered at Ince Marshes as this exceeds what we expected and we look forward to the results of the interpretation of the logs and samples."

Ince Marshes

We have completed drilling at Ince Marshes and have suspended the well as planned. We encountered a net coal thickness in total of around 36 feet in multiple seams. This was logged and cored and the logs are currently being interpreted. In addition we encountered a very significant shale section of at least 1,000 feet. At TD (target depth) we were still in the shale section. This shale is referred to locally as the Holywell Shale and is referred to as the Bowland Shale in the BGS (British Geographical Society) stratigraphy. Gas indications were observed across the interval. The shale section encountered was also logged, which helped to identify a number of potentially prospective zones, and these results together with rock samples are also now being analyzed. Previous independent analysis suggested a GIIP of up to 4.6 tcf in this area.

Production

Production from our assets continues at an average rate of c2,700 boepd, since completion, comprising c2,600bpd of oil with the balance being gas. This is 15 percent ahead of the forecasts contained in the competent persons report by Senergy in the recent admission document. Approximately 1,500 bopd is currently hedged at $93.4 per barrel with the balance achieving prices currently in excess of $106 net per barrel.

Star Acquisition and future work program

The acquisition and subsequent integration continues smoothly. We have formed a team to review the combined well stock of more than 215 wells at over 100 sites to consider the viability of wells that are currently shut in and any activity that can be undertaken to enhance production. The results of this analysis will be incorporated alongside the interpretation of the results from Doe Green and Ince Marshes in the enlarged group's work program.

Tags: IGas Energy