IGas provides an operational, reserves and financial update for the year ended 31 December 2020.

Operational Highlights

· Net production averaged 1,907 boepd for the year, within guidance, while operating costs for the year were c. $33/boe (at an average 2020 exchange rate of £1:$1.29). 

· 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) in 2021, albeit subject to the ongoing challenges that COVID-19 presents.

· Welton and Scampton waterflood projects are now on line and in the commissioning stage. Both projects were completed within budget with production uplift expected to be realised during 2021 with a maximum anticipated, incremental production rate of 100 bbls/d for Scampton and 120 bbls/d anticipated for Welton. The completion of these two projects has converted 840 Mboe of 2P reserves from undeveloped to developed as per D&M 2020.

· Geothermal - GT Energy

o  Stoke-on-Trent build out of heat network delayed due to impacts of COVID-19:

§ Planning decision expected before Easter 2021;

§ Exploring with Engie a proposal to deliver geothermal district heating project in Stoke-on-Trent;

§ Ongoing discussions with Government regarding future financial support beyond the closure of the Non-domestic Renewable Heat Incentive to new projects on 31 March 2021.

o  Growing development pipeline of potential projects in Newcastle, Crewe, and Southampton.

· Hydrogen - Further to the announcement in October 2020 of a partnership with BayoTech, a manufacturer of modular steam methane reformation equipment, the evaluation of candidate sites is underway and we expect to advance projects in 2021.

Reserves Update

The Company announces today key highlights from its reserves and resources of its conventional oil and gas interests, as at 31 December 2020, from a Competent Persons Report (CPR) carried out by DeGolyer & MacNaughton (D&M), a leading international reserves and resources auditor.

Key highlights

IGas Group Net Reserves & Contingent Resources as at 31st Dec 2020 (MMboe)*

· 2P reserves replacement ~ 257% (1P ~275%)

· 1P NPV10 of $150 million: 2P NPV10 of $204 million*

*based on forward oil curve of: 2021 $53/bbl; 2022 $56/bbl; 2023 $58/bbl; 2024 $59/bbl;2025 $62/bbl

KeyFacts Energy: IGas Energy UK country profile