IGas to start drilling at Ellesmere Port exploration site in November 2014

Oil and gas exploration and production firm IGas Energy is planning to start drilling at its Ellesmere Port exploration site in November 2014.

The vertical exploration well will be the third drilled as part of a programme designed to extract shale gas reserves from several sites throughout the company’s licenced areas in the North West.

IGas said the exploratory work carried out so far has given it the confidence to design the first hydraulic fracture programme for few of its initial wells in the area.

The move will support the future planning applications for potential shale wells and the ability to demonstrate the commerciality of gas extraction from the deep formations.

IGas is also in the advanced stages of three gas monetisation projects and anticipates revealing additional details shortly.

The company’s production for the six months ended 30 September 2014, totalled 2,766 barrels of oil equivalent per day (boepd), up from 2,704 boepd for the same period in 2013.

IGas is working several partners on its submissions for various blocks in the 14th round of onshore licensing, with applications scheduled to close by 28 October.

The company’s 2D seismic acquisition in its North West project is anticipated to start in the next two weeks, and it is also preparing a 3D seismic with a view of applying for multi-well sites for drilling and fracking in the first half of 2015.

IGas noted that its acquisition of Australia-based Dart Energy is in its final stages with an integration programme underway.

In May 2014, IGas agreed to acquire Dart Energy in a share-based deal worth about £117.1m.

IGas produces around 3,000 barrels of oil and gas equivalent a day from 110 sites throughout the UK.