Business
IGas First Electricity Genera
IGas First Electricity Genera.
About this update from Star Energy Group Plc
[{"type":"text","content":"\n RNS Number : 7684S Island Gas Resources PLC 26 May 2009 \n \n\n26 May 2009\n\nISLAND GAS RESOURCES PLC\n('IGas', 'the Company' or 'the Group')\n\nSignificant Developments at IGas\n\n\nThe Board of IGas, the leading coal bed methane (CBM) developer in the UK, is delighted to announce three significant developments towards the commercialisation of IGas' assets and a UK first in terms of CBM.\n\n\n\nFirst electricity generated from CBM gas in the UK\n\n\n40% increase in resource base\n\n\nSecond field development plan approved by DECC\n\n\n\nAndrew Austin, IGas' CEO said:\n\n'First electricity generation is a huge step for IGas and a UK first. This is clear evidence that the UK coal bed methane industry can make a real contribution to the country's energy needs. The significant increase in our estimated resource base and approval of our second field development plan demonstrate the commercial potential of IGas' acreage.'\n\n\nFirst electricity generated from CBM gas in the UK\n\nIn a UK first, IGas, in conjunction with its joint venture partners Nexen has successfully commenced electricity generation from domestic CBM gas at its Doe Green site (situated between Warrington and Widnes) in Cheshire.\n\nDuring the commercial test phase last week, electricity was successfully produced and transferred to the National Grid. Over the course of the coming months, the CBM gas flow from the Doe Green site is expected to steadily increase and the electricity produced from this pilot alone should be able to power approximately 1,200 homes. First commercial sales via the Grid are expected to be sold at or around current spot market price and are planned to commence shortly.\n\n\n40% increase in resource base\n\nIGas also announces that a recent independent evaluation of GIIP has found that the Group's resource base has increased by around 40 per cent from the previous evaluation announced on 24 November 2008, and by 142 per cent. since the Company's admission to AIM in December 2007. A detailed further assessment undertaken by Equipoise Solutions has yielded a new, risk* weighted, net mid-case estimate for GIIP of 2,169 bcf, up from 1,554 bcf, itself an increase over the original 893 ...