The board of IGas confirms that IGas' mid-case net Contingent Recoverable Resources have increased by 41% from 571Bcf to 807Bcf (2C). IGas' high case gas in place is now in excess of 8.5Trillion cubic feet.

This follows the completion of a £13.75m placing and farm-up agreement with Nexen in December 2009. The 807Bcf, which equates to around 140 million barrels of oil, is derived from a statistical aggregation of Contingent Recoverable Resource ranges calculated on an individual coal seam basis.

The evaluation was carried out by the world-renowned international petroleum consulting firm DeGolyer and MacNaughton. These results reflect only the changes in equity that have taken place since the report was initial written assessing the contingent recoverable resources of the group as at 31st December 2008 (the Report).

The estimates of net Contingent Recoverable Resources reflect the increases in equity in properties as of 11 December 2009, which are located in Lancashire, Cheshire, Yorkshire, Staffordshire and on and offshore North Wales. In estimating the revised IGas net Contingent Resources only changes to equity have been considered. No additional data beyond that utilized in the Report other than revised equity interests were incorporated in these estimates.

IGas continues to produce gas from its pilot production site at Doe Green in Warrington and to sell electricity through its on-site generation, a UK first from CBM. Initial production rates indicate that the Company should exceed its threshold for commerciality.

Andrew Austin, IGas CEO said, 'These findings confirm that IGas has enough capacity to supply electricity to around seven per cent of all UK households for 15 years. We are on track to start full-scale UK production next year. CBM and other unconventional gas provides a secure home-grown resource which could make a significant contribution to UK gas consumption.'

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