http://www.proactiveinvestors.co.uk/companies/news/63642/igas-energys-enormous-uk-shale-potential-is-the-reason-to-buy-shares-says-broker-63642.html
"IGas Energy’s “enormous” UK shale potential is the reason to buy shares, says broker
By Jamie Ashcroft November 27 2013, 2:18pm
IGas Energy’s (LON:IGAS) solid oil production growth underpins the group’s value, but it is the potential of its UK shale assets that give investors a reason to buy the shares, according to broker Canaccord Genuity.
Canaccord analyst Charlie Sharp says the potential of the Bowland shale, where IGas’s acreage is found, is enormous. The company’s own 102 trillion cubic feet (tcf) gas-in-place estimate, backs up this assertion.
Indeed, so do the recent transactions agreed by fellow early movers Cuadrilla and Dart Energy, with Centrica and E(G)DF respectively. According to Sharp, the two separate farm out deals are “very encouraging” as they demonstrate interest from much larger companies in the UK shale play.
IGas could be a beneficiary of this interest, he reckons.
“IGAS still has 100% of its licenses, so it has ample scope to farm-out following the drilling of its Bowland appraisal wells (a second well is planned),” the analyst said in a note.
“We expect that 2014 will be a busy year across the region and IGAS is ideally placed to gain the benefit of positive operational newsflow from the activities of all the participants.”
Sharp says the outcome of the current drill programme at the Barton Moss site, on the outskirts of Manchester, will be the next catalyst for IGas shares.
The company expects to complete its operations on the shale gas exploration well in the first quarter of next year."
Dart have 110Tcf OGIP, which is more. IGas market cap of around $400m AUD cf DTE's of $100 million AUD.
If Airth gets going we will also be outdoing IGas on the revenue front.
Easy re-rate up to 40 cents in next 12 months for mine.
- Forums
- ASX - By Stock
- igas rated 'strong buy' due to uk shale
http://www.*.co.uk/companies/news/63642/igas-ene...
-
-
- There are more pages in this discussion • 8 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)