Igas Energy PLC IGAS Acquisition of complementary onshore fields

  Igas Energy PLC (IGAS) - Acquisition of complementary onshore fields

RNS Number : 3902N
Igas Energy PLC
28 September 2012




28 September 2012

                           IGas Energy plc ("IGas")

                 Acquisition of complementary onshore fields

The Board of IGas is pleased to announce the signing of a heads of terms
agreement for the acquisition of P.R. Singleton Limited ("PR Singleton") from
Providence Resource P.l.c ("Providence") (the "Acquisition") for US$66m
(c.£41m).

On completion, IGas will own 100% of PL240, including the Singleton field
which is close to existing IGas assets in the South of England, and 50% of
PEDL 233 including the Baxter's Copse and Burton Down fields. Current
production from the Singleton field is 530bopd (700boepd).

Key Highlights

· Purchase consideration of US$66m



· Singleton's oil assets have been estimated by Netherland, Sewell &
Associates, Inc. (an independent reserves assessor) for PR Singleton, as at 30
June 2012, to be as follows:

o 3.9mmbbl of 1P reserves - NPV10 US$127m

§ Proved developed producing reserves NPV10 US$64m

§ Proved underdeveloped reserves NPV10 US$63m

o 5.3mmbbl of 2P reserves - NPV10 US$157m

o Estimated production of 485bopd in calendar year 2013



· Baxter's Copse assets are estimated by RPS Energy, as at 1 July 2009, to
be 2.7mboe net



· c.US$25mm of tax losses within PR Singleton on completion



· The consideration will be funded by debt. IGas is currently in advanced
discussions with potential lenders

The Acquisition, expected to be completed by the end of the year, is
conditional upon the conclusion of debt financing and obtaining certain
regulatory approvals.

Andrew Austin, CEO of IGas Energy, commented:

"The Singleton field lies between our existing Storrington and Horndean fields
in the Weald Basin. We currently sell all the oil produced at Singleton field
on behalf of Providence and have a very good understanding of the field given
its history. We see considerable upside from the field alongside the
additional resources in Baxter's Copse."

For further information please contact:

IGas Energy plc,                             

Andrew Austin,CEO                            Tel: +44 (0)20 7993 9901

Stephen Bowler, CFO


Jefferies Hoare Govett                       Tel: +44 (0)20 7029 8000

Sara Hale / Jamie Buckland / Graham Hertrich


Canacord Genuity                             Tel: +44 (0)20 7523 8000

Rob Collins / Tim Redfern


Kreab Gavin Anderson                         Tel: +44 (0)20 7074 1800

Ken Cronin/ Kate Hill/ Anthony Hughes



                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


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