IGas announces its full year results for the year ended 31 December 2020.
- Net production averaged 1,907 boepd for the year (2019: 2,325 boepd), within revised guidance, while operating costs for the year were c.$33/boe (at an average 2020 exchange rate of £1:$1.29) (2019: c.$30/boe).
- In 2021, we anticipate net production of between 2,150-2,350 boepd and operating costs of c.$32/boe (assuming an exchange rate of £1:$1.35), albeit subject to the ongoing challenges that COVID-19 presents.
- Reserves and resources upgraded in DeGolyer & MacNaughton (D&M) CPR as at 31 December 2020 - IGas net reserves and resources (MMboe)*
Planning for Stoke-on-Trent geothermal project granted by Newcastle-under-Lyme, awaiting Stoke-on-Trent approval.
- The Renewable Energy Association (REA) and ARUP will launch a report in April 2021 into the economic opportunity of harnessing deep geothermal energy to solve the decarbonisation of heat in the UK.
- First sites for hydrogen production in South-east England identified
• Planning submissions Q2/3 2021
• Final Investment Decision to follow within 3 months of planning approval
• First production of hydrogen could be in 2022
Corporate and Financial Summary
- Successful redetermination under the Group's Reserve Based Lending facility (RBL) at 31 December 2020 confirming $31.7 million (£24.0 million) of debt capacity and headroom of $11.7 million (£8.9 million).
- Cash balances as at 31 December 2020 of £2.4 million and net debt of £12.2 million.
- The Group invested £8.5 million across its asset base during the year (2019: £6.4 million). Budgeted capex for 2021 is £5.3 million.
- Underlying loss of £2.7 million (2019: profit £4.6 million). Loss after tax of £42.1 million (2019: loss £49.8 million) due to an impairment of £38.5 million of oil and gas assets (2019: impairment of £53.9 million primarily relating to our shale assets) being recognised on oil and gas assets due to lower oil price forecasts. Ring fence tax losses of £256 million as at 31 December 2020.
- As at 31 December 2020, the Group had hedged a total of 369,600 bbls for 2021, using a combination of collars (166,800 bbls at an average downside protected price of $43.0/bbl) and fixed price swaps (202,800 bbls at an average fixed price of $44.7/bbl).
- Foreign exchange hedges in place at 31 December 2020 of $3 million for 2021 at an average rate of $1.20:£1.
Commenting today Stephen Bowler, Chief Executive Officer, said:
"2020 was an exceptionally difficult year for everyone. Despite these highly challenging circumstances, the Company has continued to make progress in a number of key areas and continues to adapt its business to operate, both in the current environment, and to develop its business strategies to deliver a long-term and sustainable business.
We still retain a sharp focus on costs and conserving cash but as commodity prices improve we will continue to invest in our assets where appropriate and to move ahead purposefully with our geothermal and hydrogen projects."
Ross Pearson, Technical Director of IGas Energy plc, and a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, March 2006, of the London Stock Exchange, has reviewed and approved the technical information contained in this announcement. Mr Pearson has 20 years oil and gas exploration and production experience.