Ineos completes IGas licences interest acquisition
Ineos said it has completed the deal with IGas, revealed on the 10th March, making it the UK’s third largest shale gas company.
The deal includes the acquisition of a 50% interest in seven IGas shale gas licences in the North West of England (the Bowland licences), the company said in a statement.
It also consists of a 60% interest in three Petroleum Exploration & Development licences (PEDL’s 145, 193 and EXL273) and a 50% interest in a further four licences (PEDL’s 147, 184, 189 and 190).
In Scotland, Ineos will acquire IGas’ entire interest in PEDL 133 (the Grangemouth licence) which will give the company 100% ownership of this asset.
In addition, Ineos has the option to acquire 20% in two IGas East Midland shale gas licences (PEDL’s 012 and 200).
Ineos will assume operatorship of PEDL’s 133, 145 and 193 and EXL 273 in phases.
Ineos is paying IGas a cash sum of £30 million and additionally committing to fund a two phase work programme of up to £138 million to develop the sites. IGas will reimburse its share of the work programme to INEOS upon commencement of commercial production.