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AIM listed oil and gas outfit Igas Energy (LON:IGAS) has said that it will increase its capital expenditure over the remainder of 2018 due to the higher oil price. Production over the first six months of the year had been an average of 2,300 boepd and it is expected that this level will be maintained in the second half. Shares in the company dropped by 8.84% to 105.75p (as of 15:15 BST).
Chief Executive Steven Bowler said: “With production broadly in line and a significantly higher oil price, we can begin to augment our conventional work programme from the opportunities we have identified for our producing assets.
Last week, the Government awarded final consent to Cuadrilla to hydraulically fracture the UK’s first onshore horizontal shale appraisal well. This was a significant milestone for the industry and brings us a step closer to determining flow rates that will start to prove up the wider shale gas prospectivity. It also demonstrates continued commitment from Government at a time when the UK, and indeed the whole of Europe, is becoming ever more dependent on imports. We look forward to starting our own appraisal campaign in North Nottinghamshire soon”.