IGas Energy has signed a Farm out and Purchase Agreement with INEOS. On completion of the transaction, INEOS will acquire an interest in certain licences in the North West and East Midlands and the Group's participating interest in the acreage held under PEDL 133 in Scotland.
The consideration for IGas' participating interests comprises £30 million cash payable to IGas on completion and a funded forward work programme of up to £138 million gross, of which IGas' share to be funded fully by INEOS, is expected to amount to approximately £65 million.
•In the North West, INEOS will acquire a 50% interest in IGas' licences: PEDL, 147, 184, 189, and 190, and a 60% interest in IGas' licences: PEDL 145, 193 and EXL 273 (collectively, the 'Bowland Licences');
•In the East Midlands, INEOS has the option to acquire 20% in PEDL 012 and 200
•In Scotland, INEOS will acquire IGas' entire working interest in the acreage held under PEDL 133 in the Midland Basin and assume operatorship;
•At completion INEOS will pay IGas a cash sum of £30 million;