Igas seems to have a appetite for French $$$. Wow price target by Jefferiesat $1.75. It is not bad I thought.
IGas in expansionary mode Revenues for IGas Energy (IGAS) rose on the back of an encouraging 11 per-cent increase in full-year production. Average net production for the year ending in March came in at 2,783 barrels of oil equivalent per day (boepd), against 2,470 boepd in the previous year. The UK driller also swung into profit at the pre-tax level, having lost £6m in 2013, thanks to a halving of net finance costs. The cost of sales increased by a quarter during the year to £47.9m, though this was commensurate with the company’s expansion. During the period, IGas successfully brought in France's Total as a 40 per cent partner in two licences, covering 240 square kilometers of Nottinghamshire and South Yorkshire, in return for a work programme of up to $46.5m (£27.4m). Production is also likely to expand further on the back of an all-share acquisition of Dart Energy, struck last month. The deal not only leaves IGas with an extensive work programme funded by GDF Suez and Total, but the combined acreage represents the largest area in the UK licensed for shale gas exploration. Jefferies gives a price target of 175p a share, based on a core valuation of 52p per share.
DTE Price at posting:
17.5¢ Sentiment: Hold Disclosure: Held
