UK coal-bed methane producer IGas (formerly Island Gas) has increased its net contingent recoverable resources by over 41 per cent to 807bn cubic feet of gas (equivalent to around 140m barrels of oil), according to consultants DeGolyer and MacNaughton.
IC TIP:
Buy
at
85p
This upgrade reconfirms the existence of recoverable gas and the company has secured sufficient land and surface access to sites. All that remains to prove is the rate of gas flow from the wells. IGas plans to drill and establish a second pilot plant in Keele, which should be producing by year-end, and a third at Point of Ayr. These should be enough to confirm flow rates and keep the company on target for full-scale production next year.
