IGas Energy announces plans for new site in Weald Basin

The AIM-traded company said the initial well would explore and evaluate the resource potential of both the Portland Sandstones and the Kimmeridge Micrites.

Recent technical studies by the IGas team reportedly concluded that the Kimmeridge Micrites had the potential for “significant” resources of around 300 million barrels of oil in place within PEDL 235.

In addition, the initial well would also appraise the Portland Sandstone gas discovery.

The firm said it would shortly begin discussions with Surrey County Council and other stakeholders, with a view to submitting a planning application.

As part of the planning process, IGas said it would undertake community consultation to take account of feedback from local residents before submitting the full planning application.

IGas also confirmed to shareholders that it had been unable to agree a transaction with Onshore Petroleum, and as a result all non-core assets would now remain with IGas.

A 25% farm-down of the PEDL 235 licence was included in the original transaction, but now IGas would now continue to hold 100% of the licence.

“As announced at the annual general meeting in May, we have been actively seeking sites that can appraise both the Kimmeridge Micrites and Portland Sandstones from a single well,” said IGas chief executive officer Stephen Bowler.

“Now, in conjunction with our own technical studies, and data from the discoveries in the Weald basin at Horse Hill, we are excited to be bringing forward up to two exploration [and] appraisal wells and production tests with the potential to unlock significant recoverable resources at a new site in the Weald Basin.

“We estimate hydrocarbon in place volumes of [around] 300 million barrels, which have the potential to add significant value to the company and our shareholders.”