IGas says that an independent evaluation of its net Contingent Resources has concluded that it has a potentially recoverable resource of up to 733 Bcf (3C), which is equivalent to 116million barrels of Oil; as derived from a statistical aggregation of contingent 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. The results are summarised in billions of standard cubic feet (Bcf), in the table below:

DeGolyer and MacNaughton have prepared the Contingent Resource estimates in accordance with the Petroleum Resources Management System (PRMS), an industry recognised standard. Contingent Resources are defined as discovered potentially recoverable quantities of hydrocarbons where there is no current certainty that it will be commercially viable to produce any portion of the contingent resources evaluated.

The estimates of Contingent Resources cover all of the properties owned by IGas as of 31 December 2008, which are located in Lancashire, Cheshire, Yorkshire, Staffordshire and on and offshore North Wales.

With the recent granting of the Company’s first Field Development Plan by the government and its recently announced land access deals, the Company is now well placed to start planning development decisions to progressively convert elements of its Contingent Resources into recoverable reserves

Andrew Austin, IGas CEO said: “These findings are a vindication of IGas’ acquisition and development strategy and endorses our belief and confidence in the quality of our acreage and the volume of potentially recoverable gas. These results demonstrate even further the impact of coal bed methane in the UK and the important contribution it should be making to the UK energy mix. The extensive appraisal program carried out by IGas in conjunction with Nexen, our joint venture partner and operator of all of the acreage, combined with very comprehensive pre-existing coal board data has been critical to DeGolyer and MacNaughton’s evaluation of the amount of gas potentially recoverable from our acreage”.

Tags: Island Gas Resources