IGas Energy said that it has signed a farm-out and purchase agreement with INEOS.
On completion of the transaction, INEOS will acquire an interest in certain licences in the North West and East Midlands and the Group’s participating interest in the acreage held under PEDL 133 in Scotland.
The consideration for IGas’ participating interests comprises £30 million cash payable to IGas on completion and a funded forward work programme of up to £138 million gross, of which IGas’ share to be funded fully by INEOS, is expected to amount to approximately £65 million.
Gary Haywood, CEO of INEOS Upstream said that the company believes that an indigenous shale gas industry will transform UK manufacturing and that the gas can be extracted safely and responsibly.
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Image: IGas Energy