IGas Energy (LON:IGAS) today released a positive update on its onshore UK oil producing operations.
Daily production averaged 2,513 barrels of oil equivalent, and Igas says its assets have the tested field potential for 3,500 barrels a day.
Revenues for the six months to September 30 totalled £33.4mln which brought an underlying operating profit of £12.7mln and an £8.2mln pre-tax profit. The firm generated from operations net cash of £15.5mln, and at the end of the period it has £8.6mln in cash.
"We are pleased to announce a positive set of results, with growth in reserves, material cash flow and strengthening of the balance sheet,” said chief executive Andrew Austin.
“The lifting of the restrictions on fracking also means that we are now able to advance our shale assets."
IGas is positioned to be among the early movers following its shale discovery in Cheshire, within the Bowland shale play, almost a year ago.
Last week the UK government decided to allow fracking, signalling the end of an eighteen month moratorium.
In April, IGas launched a process to find a partner for the venture, and the lifting the ban on fracking, which is an essential element in the exploration and production of hydrocarbons trapped in shale, is expected to be a boost to this process.
The exploitation of shale gas has in the past decade turned the US energy market on its head, driving gas prices down by as much as three-quarters, and it is believed that unlocking the unconventional hydrocarbon could have a significant impact on prices here too.