IGas Energy's (IGAS) full-year figures revealed solid production and revenue growth from the company’s conventional onshore UK oil and gas assets - helped up by the acquisition of a larger stake in the PR Singleton field for $66m (£44m) late in the fiscal year.
However, speculation about the company's shale gas assets has been the real driver behind the hefty share price hike this year - that really started in December, when the government lifted a moratorium on shale gas exploration in the country. Group chairman, Francis Gugen, says the company is now "at the heart of the UK’s shale revolution" and announced last month that its licences in the Bowland basin could have up to 170 trillion cubic feet of shale gas initially in place.
Admittedly, the licences are still at a very early stage of exploration and development and IGas hopes to start drilling on its licences in the fourth quarter of this year. But many investors hope the company will sign a farm-out agreement with a major oil company before then. Such big sector names as ExxonMobil, Shell (RDSB) and Total are rumoured to be interested.
IGAS ENERGY (IGAS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 117p | MARKET VALUE: | £222m | |
| TOUCH: | 117-118p | 12-MONTH HIGH: | 154p | LOW: 66p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 31p* | NET DEBT: | 131% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 0.99 | -0.39 | -0.64 | nil |
| 2009 | 0.83 | -0.50 | -0.76 | nil |
| 2010 | 0.66 | -1.54 | -1.69 | nil |
| to 31 Mar | (£m) | (£m) | (p) | (p) |
| 2012** | 22.1 | -17.9 | -8.14 | nil |
| 2013 | 68.3 | -6.00 | -11.1 | nil |
| % change† | +286 | - | - | - |
Ex-div:- Payment:- **15 months †Annualised *Includes intangible assets of £93m, or 49p a share | ||||
