Business
Farm-out Agreement with Total E&P UK Limited
Farm-out Agreement with Total E&P UK Limited.
About this update from Star Energy Group Plc
[{"type":"text","content":"\n \nRNS Number : 4439X Igas Energy PLC 13 January 2014 \n \n\n13 January 2014\nIGas Energy plc\n(\"IGas\" or \"the Company\")\n \nFarm-out Agreement with Total E&P UK Limited in PEDL139 and PEDL140\nIGas Energy plc (AIM:IGAS) and its partners (Egdon Resources, Dart Energy and eCorp) are pleased to announce they have signed a Farm-out Agreement (\"The Agreement\") with Total E&P UK Limited (\"Total\"), a wholly owned subsidiary of Total SA, under which Total will acquire a 40% interest in the UK Onshore Petroleum Exploration and Development Licences PEDL139 and PEDL140 (\"the Licences\") located in the Gainsborough Trough in Lincolnshire. The Licences cover an area of 240Km2 and border PL178 and PEDL006 at Beckingham, an existing IGas producing field. IGas will become operator of the Licences upon completion.\nUnder the terms of the Agreement, Total will pay $1.6 million in back costs to the partners and fund a fully carried work programme of up to $46.5 million, with a minimum commitment of $19.5 million. At the end of the carried work programme Total will become operator of the Licences.\nThe programme will include the acquisition of 3D seismic; the drilling and testing of a vertical exploration well and associated well pad construction; and, conditional on the success of the testing of the exploration well, the drilling and testing of a second appraisal horizontal well. \nOn completion of the transaction the interests in the Licences will be: Total E&P UK Limited (40%), GP Energy Limited (a subsidiary of Dart Energy Europe) (17.5%), Island Gas Ltd (a subsidiary of IGas) (14.5%), Egdon Resources UK Ltd (14.5%), and eCorp Oil & Gas UK Ltd (13.5%).\nCompletion is expected to take place not later than 30th June 2014.\nAs part of its ongoing plans for the development of natural gas in the North West, the Company is also announcing its intention to apply for permits for the acquisition of extensive 3D seismic surveys across a number of licence areas. This will enable IGas to identify several potential exploration and development sites in the area. The Company will also begin the permitting process for the acquisition of 3D seismic surveys in the East Midlands and the South of England. \nAt our exploration site at Barton Moss, we have set the conductor and continue to d...