IGas Energy (LON:IGAS), the UK based oil and gas producer, has started a formal process to find a farm-in partner for its Bowland Shale prospect in Cheshire, to accelerate the successful development of what is believed to be a potentially significant resource base.
The company’s Ince Marshes well has demonstrated the presence of the Bowland shale, which has the potential to at least double the independent pre-drill estimate of gas initially in place of up to 4.6 trillion cubic feet. Logs and samples from this well are being analysed.
IGas has appointed the investment bank Greenhill as its advisor to conduct the farm-out process, which is expected to be completed within four to five months.
Andrew Austin, the chief executive of IGas, said: “The Bowland Shale offers a considerable addition to our existing conventional and unconventional resources and its potential materiality represents an opportunity for both the company and future partners. We have already received a number of expressions of interest from world-class companies to partner with us for what looks to be a highly significant opportunity. We will now move forward and find the right partner with the appropriate complementary skills and resources to work with us during this exciting project.”
He added: “The UK Government’s announcement about a new gas generation strategy and the support given in the budget to the industry are all signs that UK sourced hydrocarbons are going to play an increasingly important role in the future energy mix of the country.”
