IGas announced yesterday that it was divesting itself of a number of “non-core assets”. Principally
oilfields in the East Midlands and Southern England but also an interest in Scotland. Of particular interest in the East Midlands licence area ML3 Egmanton oilfield, ML6 Bothamsall oilfield (Bothamsall14 pictured above) and ML7 South Leverton. Interesting expression “non core” as we might normally associate the extraction from conventional onshore assets as a core activity for IGas the biggest onshore operator. The assets were in the main acquired from BP and are all rather long in the tooth with one imagines dwindling reserves and limited prospect. IGas will retain the Beckingham and Gainsborough oil/gas wells all of which are interconnected by pipeline back to the oil depot Gainsborough 5. Also keeping Glentworth, Cold Hanworth and Scampton interests. Presumably the new operator will use the existing facilities at Gainsborough 5 or Welton using tanker collections much as currently.
The IGas statement contains: “As we continue to identify and evaluate the future potential of our existing producing assets, we have agreed to divest certain non-core assets representing c.100 boepd [barrels of oil equivalent per day] to Onshore Petroleum Limited (OPL).
“A Sale and Purchase Agreement has been signed for a consideration of £3.14 million, which will be satisfied by the provision of oil field services to IGas by OPL.”
This might be interpreted as a further reference to the previous post and paper “Unconventional petroleum potential of the Gainsborough Trough, East Midlands, United Kingdom” and an indication of where IGas will now concentrate its efforts.