Igas Energy on track to meet full-year production forecast

14th Dec 2022 15:53

(Sharecast News) - UK-focussed onshore energy company Igas updated the market on its operations on Wednesday, reporting that it was on track to deliver its full-year production forecast of between 1,900 and 1,950 barrels of oil equivalent per day.

The AIM-traded firm initiated a production drive in early October to ensure wells, plant and equipment had the maximum uptime, going from three to five fully-operational rigs, returning 18 offline wells to production, converting two wells from jet pump to beam pumps, lowering operating costs, and "significantly increasing" water injection capacity across its asset base.

It said the planning application for the Glentworth project had now been submitted to the Lincolnshire County Council, with the company awaiting validation.

Phase one had the potential, it said, to add around 200 barrels per day, and the development of about one million standard barrels of 2P reserves.

Looking at its geothermal operations, Igas said its joint application with SSE to the Green Heat Network Fund was now under consideration by the scheme managers, Triplepoint and BEIS, with a decision expected in early 2023.

A total of five tenders were submitted through the Carbon Energy Fund to conduct detailed feasibility studies into supplying renewable heat to five NHS trusts, the company added.

If successful, they could result in five long-term renewable heat supply contracts.

"When I stepped into the role, I indicated that there were changes in the business required to make it more efficient to ensure operational excellence in our conventional assets, expedited growth in our geothermal business and we have a structure that appropriately reflects the size and shape of the current business," said interim executive chairman Chris Hopkinson.

"After a thorough review of the business, there has been a restructuring and rightsizing of the executive committee that will enable improved strategic planning and more efficient decision making, as the business looks to create a strong and relevant future for its investor base.

"We are focused on putting cash generated during high commodity prices to work into maximising recovery from our existing assets and developing near term incremental production opportunities as well as growing our nascent geothermal business into a material enterprise."

At 1534 GMT, shares in Igas Energy were up 3.14% at 16.4p.

Reporting by Josh White for Sharecast.com.