Unconventional gas producer IGas remains on target to put the UK's first full-scale coal bed methane (CBM) plant into production next year. Following a successful pilot well at Doe Green, the company's second pilot well has been completed at Keele University and should flow gas soon. A third test well will follow at Point of Ayr and, assuming success both there and at Keele, the company will move to full-scale production at a site yet to be decided.
IGas is also appraising a potentially significant shale gas resource on which an independent assessment is expected soon, possibly in September. Cash of £16m will finance the company through to first full-scale production and a total of seven permissions for full-scale production sites provides plenty of expansion potential beyond then.
What we said:
When: 2/10/09
Price: 65p
Tip performance to date: +14%
