IGas has just told investors about the results of its exploratory drilling at Barton Moss outside Manchester and it looks like excellent news:
The key results from the Barton Moss well cores...are as follows:
- Total Organic Carbon ("TOC") analysis indicates values of up to 5.72% with an average of ca. 1.9%
- The thermal maturity measurements of the shale places the shale in the gas generating window as per the basin model predictions
- The measured permeabilities are comparatively high for the observed porosities when compared with other typical US shale plays
- The mineralogy of the Bowland Shales in this area are very comparable with other key US plays, notably the Marcellus and Fayetville, when comparing quartz/clay/carbonate content
- The cores were observed to have numerous natural fractures with some evidence of alteration due to fluid migration. This is believed to be associated with the depositional setting of the well location.
In summary, the results from the Barton Moss well represent an important datapoint in understanding the structural and depositional setting of the basin. The results will help refine the subsequent appraisal programme as well as better delineate the resource potential. The extensive core and log analysis undertaken to date will be invaluable in defining future development options including geomechanical data for the design of hydraulic fracture treatments.
These results combined with the earlier Ince Marshes-1 well which encountered a thick (ca 1000 feet) section of shale with good TOC's and the forthcoming Ellesmere Port exploration well will help to better define the overall potential of the IGas acreage in the North West.
The Company has developed an estimate of GIIP for the enlarged group's shale gas position as follows:
GIIP* Low Most likely High Net Tcf 34 147 263 Gross Tcf 50 192 352