Ineos said it has completed the deal with IGas, revealed on the 10th March, making it the UK’s third largest shale gas company.
The deal includes the acquisition of a 50% interest in seven IGas shale gas licences in the North West of England (the Bowland licences), the company said in a statement.
It also consists of a 60% interest in three Petroleum Exploration & Development licences (PEDL’s 145, 193 and EXL273) and a 50% interest in a further four licences (PEDL’s 147, 184, 189 and 190).
In Scotland, Ineos will acquire IGas’ entire interest in PEDL 133 (the Grangemouth licence) which will give the company 100% ownership of this asset.
In addition, Ineos has the option to acquire 20% in two IGas East Midland shale gas licences (PEDL’s 012 and 200).
Ineos will assume operatorship of PEDL’s 133, 145 and 193 and EXL 273 in phases.
Ineos is paying IGas a cash sum of £30 million and additionally committing to fund a two phase work programme of up to £138 million to develop the sites. IGas will reimburse its share of the work programme to INEOS upon commencement of commercial production.