IGas maintains production guidance as it advances new projects

IGas Energy said in an update on Thursday that it was still expecting net production of between 2,150 and 2,350 barrels of oil equivalent for 2021.

The AIM-traded firm said that as at 30 April, cash balances totalled £2.4m, and net debt stood at £12.8m, while as of 4 May, it had hedged a total of 270,400 barrels for the remainder of 2021 at an average floor rate of $44 per barrel, and 60,000 barrels for the first quarter of 2022 at an average rate of $60 per barrel.

Looking at its geothermal business, the company said that while it was waiting for planning approval for the Stoke-on-Trent project, it was making progress on securing specific sites at “high-potential” locations as part of its development pipeline, and looked forward to providing further updates.

It said it was having positive discussions with government regarding future financial support for its geothermal projects.

IGas said it remained “firmly focussed” on cost and capital discipline while building the business.

It said it would continue to invest in its existing assets where appropriate, to realise future benefits, and was moving ahead with its geothermal and hydrogen projects.

“In a year of unprecedented disruption caused by the ongoing pandemic and associated lockdowns, much has been achieved thanks to the professionalism and hard work of the IGas teams and our partners and suppliers,” said interim non-executive chairman Cuth McDowell.

“Reflecting on our 2020 results, despite highly challenging circumstances, the company has continued to make progress in a number of key areas and to develop its business strategies.

“We delivered production within our revised guidance, brought our waterflood projects online and completed the pivotal acquisition of GT Energy, the UK developer of geothermal energy.”

At 1523 BST, shares in IGas Energy were down 2.34% at 20.02p.