IGas is today providing an update on further actions it has taken to mitigate the impact of continued low oil prices during the COVID-19 lockdown period.

The company continue to keep costs under review in the light of continued oil price and market volatility.  Whilst all of the Group's operations continue to function effectively, we consider it prudent, with Brent at c.$25/bbl and gas prices at c.15p/therm, to temporarily shut-in a number of sites during the months of May 2020 and June 2020. The impact of the shut-in will be to reduce production by c.600 boepd for this period. IGas have 50,000 bbls hedged at an average price of $53/bbl in May 2020 and June 2020 and this will now represent c.90% of expected production.

Due to the anticipated reduction in operating costs associated with the shut-in sites, this action will have a positive impact on cash flow during these two months of c.£500k. Those employees impacted will be furloughed in line with the Government scheme.

IGas will review the situation in mid-June 2020 to reassess the oil price and the situation regarding the furlough scheme and update the market as appropriate.

Commenting Stephen Bowler, Chief Executive Officer, said:
"As the majority of our sites are owned and operated by us 100%, it gives us the flexibility to be able to temporarily shut-in a number of sites and the ability to rapidly restore production, at those sites, once energy prices improve.

We continue to make the health and safety of our staff and local communities our priority whilst actively managing our asset base for the benefit of our shareholders.

We believe we have positioned the business as well as possible to weather the current unprecedented market conditions and will continue to take further actions as and when appropriate."

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