IGas Energy working on five year shale gas plan

IGas Energy (LON:IGAS) and its multinational partners are working on a five-year development plan for shale gas projects in the North West and the East Midlands.

The British oil and gas company yesterday told investors that chief executive Andrew Austin is to step down following the completion of the INEOS transaction this week.

It also unveiled a number of cost-cutting measures including a 25% reduction to headcount and the closure of the acquired Dart Energy offices in Stirling Scotland. IGas described it as a “difficult but necessary decision”.

Stephen Bowler IGas’s current chief financial officer will take over the chief executive role from Austin and a recruitment process has now begun to hire a new chief financial officer.

"While sad to see Andrew leave I am excited by the opportunity to lead IGas into this next stage of its development” Bowler said.

The focus will be on the shale gas appraisal programme that is primarily being funded by major industry partners Total GDF SUEZ and INEOS. In the coming years some US$285mln of work will be funded between these partners.

IGas said it is currently working with its partners to optimise a five year shale gas development plan for its acreage in the North West and East Midlands. The programme is expected to include seismic acquisition multi-well drilling hydraulic fracturing and early commercialisation the company added.

Planning consultation work is currently underway for drilling plans in the East Midlands alongside partners Total Egdon and Ecorp.

Two shale exploration wells are being planned one vertical and one horizontal and the company said there is to be an extensive and comprehensive stakeholder engagement programme.

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