Igas Energy reports better than expected production
Source - SMW
Igas Energy net production averaged 2,335 boepd for the year and operating costs were about $28.5 per boe while the average production rate in December 2017 was about 2,400 boepd .
Igas energy reported cash balances of £15.m and net debt of £6.1m for the year, and conventional reserves replacement of over 100% (31 Dec 2017: Net 2P reserves 13.64 MMboe).
For the full year 2018, the company said it expects net production of between 2,300 to 2,400 boepd.
Stephen Bowler, CEO, said:
'We ended the year positively with average production and production costs for the year better than expectations, whilst also replacing reserves by over 100% on a 2P basis.'
'With Brent pricing currently at around US$70 per barrel, we are generating free cash flow in our conventional business and continue to evaluate additional projects with attractive economics.'
'2018 is going to be an exciting year for the onshore industry. Cuadrilla recently announced that early results from its vertical wells in Lancashire were very encouraging and they are confident that there is a very sizeable quantity of natural gas in the Bowland Shale.'
'A number of wells are being drilled or tested by operators across multiple basins, including at our two sites in Nottinghamshire, which will help us better understand the significant hydrocarbon opportunity below our feet.'
At 8:23am: (LON:IGAS) Igas Energy PLC share price was -1.6p at 87.8p