IGas Energy identifies hydrocarbon bearing shale resource, ups gas in place estimate across acreage

IGas Energy (AIM: IGAS) has identified a significant shale resource within its acreage, while also reporting a revised competent person’s report (CPR) with an increase gas initially in place (GIIP) estimate in the mid case by 7.5% from 3,558 Bcf (billion cubic feet) to 3,823 Bcf.

The shales, which are understood to be hydrocarbon bearing, have been identified as potentially extending over 1,195 sq km (square kilometres) with an expected average thickness of 250 metres. Total Organic Content (TOC) has been measured to range from below 0.7% to over 5% with an average in the Holywell shales of around 2.1%.

The hydrocarbon potential of the shales and their potential to produce gas are currently being reviewed by independent consultants.

The company has also revised its CPR (competent person’s report) with the GIIP estimate across its acreage after seismic and other data from Point of Ayr was reprocessed by Equipoise Solutions. The low case estimate was upped from 1,180 Bcf to 2,293 Bcf, the mid case estimate was increased from 3,558 Bcf to 3,823 Bcf and the high case estimate revised down from 8,360 Bcf to 8,092 Bcf.

IGas said that the revision increased its confidence and removed the risk weighting previously applied to the area, while also tightening the range of low-mid-high case expectations of GIIP.

“This continuing work on understanding the full potential of our acreage to deliver gas once again gives us greater confidence in the resources we hold. The potential of delivering shale gas is particularly exciting, as this sector has seen significant growth in North America and increased interest across continental Europe. The revised CPR also gives us greater confidence in the size of the resource and once again shows the value of the extensive data set we hold,” said Chief Executive of IGas Energy Andrew Austin.

http://www.proactiveinvestors.co.uk/companies/news/13295/igas-energy-identifies-hydrocarbon-bearing-shale-resource-ups-gas-in-place-estimate-across-acreage-13295.html