IGas, a domestic gas producer and leading developer of unconventional gas resources in the UK, today announces that it has received the necessary regulatory approval to become the operator and sole owner of its licences.
This follows an announcement on 31st January 2011 of the signing of an agreement with Nexen Petroleum UK Limited, a wholly owned subsidiary of Nexen Inc, to acquire the entire issued share capital of Nexen Exploration UK Limited, resulting in IGas becoming the operator and sole owner of each of its licences. The announcement specified that the acquisition was conditional, inter alia, upon an approval of change of control by the Department of Energy and Climate Change and approval by IGas shareholders.
IGas was yesterday informed that the Secretary of State for Energy & Climate Change, does not intend to exercise his powers under the relevant model clauses incorporated in the licences held by Nexen Exploration U.K. Limited to revoke any of these licences or to seek any further changes of control of Nexen Exploration U.K. Limited following its acquisition by IGas Energy plc.
The closing of the transaction is now only subject to approval of the shareholders of IGas at the general meeting scheduled to be held at 10.00am on March 4th.
IGas was set up to produce and market domestic sourced gas, primarily from unconventional reservoirs, particularly coal bed methane. IGas is now producing gas from its pilot production site at Doe Green in Warrington and selling electricity through its on-site generation, a UK first from CBM. Initial production rates indicate that the Company should exceed its threshold for commerciality.
Following the completion of the Nexen Exploration UK transaction, IGas will have 100 per cent ownership interests in eleven PEDLs in the UK, wholly own two methane drainage licences and have a 100 per cent interest in three offshore blocks under one seaward petroleum production licence.
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Source:IGAS, March 4, 2011; Image:Nexen