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IGas makes £2.3m profit

The onshore oil and gas exploration and production company IGas made a £2.3 million net profit before tax in the last financial year.

The businesses’ financial results revealed it moved from a £6 million loss in 2012/13 to a pretax profit due to higher revenue and lower net finance costs.

IGas’ revenue increased by 11 per cent, from £68.3 million in 2012/13 to £75.9 million in the financial year ending 31 March 2014.

The company’s net debt increased to £80.4 million, up from £77.4 million in the previous financial year.

The company stated its revenues also increased due as production rates improved from 900,000 barrels of oil equivalent to 1 million barrels.

The financial results stated that an exploration well was “successfully completed” at Barton Moss, Eccles, and the full laboratory results of the cores from the test drilling site are expected in the autumn.

IGas announced in May that it planned to take over rival onshore gas Dart Energy in a £117.1 million deal.

Andrew Austin, IGas chief executive, said: “The proposed Dart acquisition puts IGas at the heart of unlocking Britain’s energy potential and demonstrates our commitment to, and confidence in, the British onshore oil and gas sector.

“The transaction will further strengthen our position financially, operationally and also significantly increases our licenced acreage as we seek to unlock the untapped energy resource that exists in Britain.

“In addition to exploration wells, it is our intention during 2015, in conjunction with partners, to drill and flow test wells on either side of the Pennines; one in the North West, and one in the East Midlands, subject to being able to obtain all the necessary permits in place.”