IGas plc today said it reserved the right to pursue legal action to recover losses from its onshore gas licences following the Government’s decision to reimpose the ban on hydraulic fracturing.
GAINSBOROUGH TROUGH
The company was responding to the Prime Minister‘s decision yesterday to re-impose the moratorium on hydraulic fracturing and a statement by the new secretary of state for business, energy and industrial strategy, Grant Schapps MP.
In a statement, IGas added it was shocked and disappointed at the ban in England at the height of energy and cost of living crises.
“IGas has a significant recoverable gas resource in the Gainsborough Trough,” said interim executive chairman Chris Hopkinson in a statement.
“Following interpretation of the cores taken across the 500m shale horizon at Springs Road, drilled in 2019, we have estimated that there is 630 Bcf of gas in place per square mile, and if applied to our entire acreage in the East Midlands, this would equate to 270 Tcf of high quality natural gas.
“At expected recovery rates, this would equate to satisfying up to 19 years of the UK’s gas demand giving this country both energy security for years to come as well as providing billions of pounds of investment into the East Midlands and the creation of thousands of skilled jobs.”
Mr Hopkinson added hydraulic fracturing would “level the playing field across all sectors, particularly in the streamlining of regulatory processes”.
INVESTMENTS
He said that IGas, its partners and investors had invested significant sums in the development of shale gas before the 2019 moratorium and again during “this political debacle” which risked driving away investment.
“On both occasions these investments were made in the belief that we were unlocking a strategically important resource and providing energy security for the UK.
“We continue to believe and assert that fracking for shale gas can and will be done safely and in an environmentally responsible manner.
“In light of the Government’s totally unwarranted U-turn and, in the interest of our shareholders, we reserve the right to pursue any legal process available to us to recover the losses that we have incurred.”