Overview

IGas currently has interests in 11 Petroleum and Exploration Development Licences (PEDLs), covering a total area of 1,754 square kilometres in the North West of England. All except PEDL 78-2 are held in joint ventures arrangements with Nexen,  IGas' equity participation varying from 20% to 50%.  The Company is Operator and has 100% equity interest in PEDL 78-2, and also has an interest in an offshore Seaward Petroleum Production Licence (SPPL 1481) on a 50/50 equity participation with Nexen. Nexen is the Operator of all other licences, and much of the initial operations are financed through carry arrangements.

PEDL 193, PEDL 184 and PEDL 190 were awarded to the IGas/Nexen consortium by the secretary of state in the 13th onshore licensing round announced in May 2008. These were all within 15 kilometres of IGas’s existing operations and added a further 646 square kilometres to the existing acreage.

Following an independent assessment by Equipoise of  IGas licences including those awarded in the 13th round it is estimated that IGas’s share of resources to be 2,508 bcf (mid case GIIP).

In December 2008 (revised August 2009) DeGolyger and MacNaughton independently assessed the Company's Net Recoverable Contingent Resource at 821 bcf (3C).  The 1C and 2C Net Recoverable Contingent Resource estimates were 398 bcf and 571 bcf respectively.