IGas is a leading onshore hydrocarbon producer in the United Kingdom, with almost a decade of experience, delivering natural gas and crude oil to Britain’s energy market. They hold licences to extract hydrocarbons across the north of Wales and the north of England covering an area of approximately 1,455 sq km. Independent analysis has confirmed that the company has an estimated net Contingent Recoverable Resource to 1,811Bcf of gas.

But what I find exciting about this company is that:
They also have the potential to explore shale gas. They have identified a significant potential shale resource within their acreage, which is estimated (on an unrisked basis) to comprise up to 4.5 trillion cubic feet of gas.

The government last week lifted an 18-month ban on fracking, the controversial method used to extract shale gas. The British Geological Survey is expected to publish research next month that will vastly increase the estimate of Britain's potential shale gas resources.

Exxon Mobil has entered talks to buy a stake in the Bowland shale project in Lancashire, owned by IGas. It is believed that Shell, Total of France, and Norway’s Statoil are also considering bids.

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I reckon we could see some significant growth in shareholder value here in the next few years - albeit to the detriment of the environment. However, with potential revenues going to the government coffers, we are likely to see shale gas being developed as an energy source in the UK.

Well done Toya. :-))

UPDATE: IGas shares soar amid reports of Exxon shale talks
12:45 pm by Giles Gwinnett and Jamie Ashcroft IGas is positioned to be among the early movers following its shale discovery in Cheshire, within the Bowland shale play, almost a year ago

---Adds updated share price and comments from oil and gas analyst Malcolm Graham-Wood---

IGas (LON:IGAS) shares jumped almost 14% in today amid speculation that major international oil firms are lining up farm-in offers for its British shale gas projects.

US goliath ExxonMobil is leading the chase ahead of other interested parties including Shell, Statoil and Total, according to a report in the Sunday Times.

This comes after the UK government lifted a ban on fracking – or hydraulic fracture stimulation – last week, paving the way for a new potential energy boom in the north west of England.

IGas is positioned to be among the early movers following its shale discovery in Cheshire, within the Bowland shale play, almost a year ago.

In April, IGas launched a process to find a partner for the venture but the ban on fracking, which is an essential element in the exploration and production of hydrocarbons trapped in shale, had been a barrier to securing a deal.

The exploitation of shale gas has in the past decade turned the US energy market on its head, driving gas prices down by as much as three-quarters, and it is believed that unlocking the unconventional hydrocarbon could have a significant impact on prices here too.

Malcolm Graham-Wood, oil analyst at VSA Capital, told Proactive that the prospect of Exxon potentially coming in was the "most exciting" aspect of the news.

"Not just because because it's the mighty Exxon but because its got the expertise of buying into shale in America pretty early."

Exxon's size also means it could put any sum down and "if it didn't work out, they could 'just write it off to experience' ", he added.

"It would give quite a lot of credence to the whole shale gas play in the UK."

In a note this morning the analyst says IGas should now "kick-on having remained in a narrow trading range since May. This is one of few pure plays offering long term value".

Last week’s decision to allow fracking comes after an eighteen month moratorium.

Privately owned oil and gas firm Cuadrilla had to stop operations after its fracking programme caused minor earthquakes in the Fylde, Lancashire.

In July, a review by the Royal Society and the Royal Academy of Engineering concluded that the health, safety and environmental risks of extracting of shale gas by fracking can be managed effectively by a tightened regulatory approach.

Cuadrilla has unearthed a significant shale gas discovery, within the Bowland Shale basin.

Estimated at 200 trillion cubic feet the discovery could potentially supply gas into the UK for several decades.

It all centres upon unconventional gas resources, which are found trapped among layers of shale rocks. To unlock the gas the small gaps in the shale have to be opened - or fractured (hence "fracking").

A mix of water, sand and chemicals is injected under high pressure into the shale. This opens up, and holds open, fractures in the shale and allows the gas to flow through the well to surface.

Because of the UK government decision, Cuadrilla can now press ahead with its appraisal and testing of the Bowland shale discovery, as well as pursue other prospects in the UK.

Thanks for adding that extra info Dreamcatcher - I had a hunch this one might appeal to you :) And it's certainly taken off today!

LOl, any more hunches, we are listening.

Another 2.5% today, not gone unnoticed lol.

Why the drop today, bounce into black, tax breaks to come in march ???

DC: only just seen you pic lol!! - didn't seem to show itself last time I logged in.

I think the drop is just a pull-back, as would be expected after the very dramatic rise at the start of the week.

This was issued today: 'Jefferies raises price target to 105p from 85p; rating buy'.
Longer term though, this should be a multi-bagger for those prepared to hang around.

An after thought for the pic. lol

Just seen this upgrade, too:
'Canaccord Genuity raises target price to 105p from 100p; rating buy' - not a big increase but nevertheless...

Close on a 10% rise today, good going.

Saturday, December 22, 2012
Weekly oil news summary including IGas, Gulfsands Petroleum, Petro Matad and Sound Oil






Once again IGas (LON:IGAS) was in focus this week and its shares jumped almost 14% amid speculation that major internationals were lining up farm-in offers for its British shale gas projects.

US goliath ExxonMobil is leading the chase ahead of other interested parties including Shell, Statoil and Total, according to a report in the Sunday Times.

It comes after the UK government lifted a ban on fracking – or hydraulic fracture stimulation – a week earlier, paving the way for a new potential energy boom in the north west of England.

IGas is positioned to be among the early movers following its shale discovery in Cheshire, within the Bowland shale play, almost a year ago.

Malcolm Graham-Wood, oil analyst at VSA Capital, told Proactive that the prospect of Exxon potentially coming in was the "most exciting" aspect of the news.

"Not just because because it's the mighty Exxon but because it’s got the expertise of buying into shale in America pretty early," he said.

Maybe getting a bit ahead of it's self?

Just out of auction @105.25 +9.1%

It will pull back, for sure. But it's one to buy into for the longer term, in my view.

I thought it would pull back - instead, this look ready to explode!

Here's some info from an RNS issued 20 December, which I didn't get around to posting at the time:

IGas Energy bounced into the black in the six months to the end of September with underlying pre-tax profits of £8.2m against a loss of £1.1m a year ago.

The group reports revenues of £33.4m against nil last time and underlying operating profits of £12.7m compared with a loss of £1.3m previously.

Chief executive Andrew Austin said: "We are pleased to announce a positive set of results, with growth in reserves, material cash flow and strengthening of the balance sheet. "The lifting of the restrictions on fracking also means that we are now able to advance our shale assets."

Happy new year Toya and well done on this one.

Thanks Dreamcatcher - Happy New year to you too!

Skinny: I find myself humming that nursery rhyme quite often these days lol :)

RNS issued yesterday, just so you know:

"IGas notes the press speculation this morning around a potential equity fundraising. The Board keeps all forms of financing under review and will update the market in due course."

IGas have today announced their proposed placing of up to 24.3m shares at 95p, representing approximately 15 per cent of the Company's existing issued share capital. It is expected that trading in the Placing Shares will commence on 18 January 2013.

For the full RNS and background details click on the link below:
IGas Proposed Placing of up to 24.3m Shares

Always believe in rumours lol! (see earlier post)