Business
Increase in equity ownership
Increase in equity ownership.
About this update from Star Energy Group Plc
[{"type":"text","content":"\n RNS Number : 9663W Island Gas Resources PLC 06 August 2009 \n \n\n6 August 2009\n\nIsland Gas Resources plc\n('IGas' 'the Company' or 'the Group')\nIncrease in equity ownership through 'farm up' in Swallowcroft area\nThe board of IGas, the leading coal bed methane (CBM) developer in the UK, is delighted to announce that the Company reached agreement on 5 August 2009 with its partner Nexen Exploration UK Limited to extend IGas' equity ownership of its acreage in the Swallowcroft area in Staffordshire through a Farm Up. The increase in equity from 20 per cent to 35 per cent is in return for an operational investment of up to £2 million. \nAs a result, IGas' gas initially in place (GIIP) has increased, with immediate effect, by around 339 billion cubic feet (bcf) or 55.6 million barrels of oil equivalent (boe). This represents an increase of around 16 per cent on the Company's risk-weighted, net mid-case estimate for GIIP from 2,169 bcf as assessed by Equipoise Solutions and announced on 26 May 2009 to 2,508 bcf.\nDeGolyer and MacNaugton has revised its Net Contingent Recoverable Resource estimates to account for the change in equity ownership, and the 2C resource has risen from 503 bcf to 571 bcf.\nThe £2 million investment will be targeted at enhancing and bringing forward operations in this acreage. Accordingly, the Company will now progress plans to commence drilling at Keele University Science Park (PEDL 56-1) before the end of the year.\n\n\n\n\n\nRevised IGas' Resources\n\n\n\nLow Case\n\n\nMid Case\n\n\nHigh Case\n\n\n\n\nRevised Net risked GIIP (bcf)\n(source: Equipoise Solutions)\n\n\n1,273\n\n\n2,508\n\n\n5,777\n\n\n\n\n\n\n\n1C\n\n\n2C\n\n\n3C\n\n\n\n\nRevised Net Contingent Recoverable Resource (bcf)*\n(source: DeGolyer and MacNaugton)\n\n\n398\n\n\n571\n\n\n821\n\n\n\n\n\n*DeGolyer & McNaughton has prepared the Contingent Recoverable Resource estimates in accordance with the Petroleum Resources Management System (PRMS), an industry recognised standard. Contingent Recoverable Resources are discovered potentially recoverable quantities of hy...