Igas said that the transaction increases the contingent recoverable resource of IGas by 115% to 1.74 trillion cubic feet of gas, or 260 million barrels of oil equivalent.
The agreement will also provide IGas access to Nexen’s unconventional gas technology, including the secondment of key personnel.
Nexen will have the right to be represented on the board of IGas by one director.
IGas CEO Andrew Austin said that as a result of this deal, the company will have enough recoverable gas to supply electricity to 15% of UK homes for 15 years.
Additionally, as operator of all the company’s acreage, it will be able to accelerate its production plans and increase its ability to deliver gas.
