The UK shale industry is gaining momentum as oil and gas explorers Cuadrilla and Third Energy also move closer to drilling their wells, IGas Energy’s CEO Stephen Bowler said on Wednesday in an update to the market.
“We see further momentum building across the wider UK shale industry as Cuadrilla and Third Energy move closer to drilling their wells and INEOS has begun to submit planning applications and shoot seismic across its licensed acreage,” said Bowler. “This additional data will help us and the wider industry to further understand the shale prospectivity in these basins.”
The executive noted that IGas continues to move its shale work program forward, with three wells having received formal planning approval in North Nottinghamshire, East Midlands of England, Kallanish Energy learns.
With a shale appraisal and development plan covered by up to $230 million carried work program, IGas has signed legal agreements for the exploratory well sites at both Springs Road and Tinker Lane, in England’s East Midlands.
The planning conditions will now be discharged ahead of the construction phase and commencement of drilling activity. Spudding will commence in the fourth quarter 2017.
The company is now in a better position, having reduced its net debt from $122 million at the end of 2016 to around $8 million at last month, following the completion of a restructuring and fund raising in April.
Bowler said there continues to be volatility in the commodity and foreign currency markets, but IGas is keeping costs under constant review. “Following the refinancing, we are cash generative at current oil prices and have a low level of debt in the business,” he added.
IGas produced an average of 2,320 barrels of oil equivalent per day (BOE/d) in the first five months of the year, slightly lower than the planned due to unexpected maintenance on wells. Production for the year is expected to average 2,400 BOE/d.