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Shale player IGas buys Scottish acreage

Sept. 9, 2013 at 7:43 AM   |   Comments

LONDON, Sept. 9 (UPI) -- The proposed acquisition of oil and gas licenses along the northern Scottish coast is part of a broad strategy for energy security, energy company IGas said.

IGas announced plans for the consideration of the entire stake in northern Scottish coastal licenses held by Caithness Oil Ltd. for $13.9 million.

"The transaction is in line with our strategy to grow our production base," IGas Chief Executive Officer Andrew Austin said in a statement Monday. "IGas continues its strategy of delivering secure hydrocarbons for Britain."

IGas said the license area includes the Lybster field. It was discovered in 1996 and tested then at 2,000 barrels of oil per day. It was put into production in May 2012.

IGas and counterpart Cuadrilla Resources are early players in the region's shale oil and natural gas sector. There has been no commercial shale natural gas yet produced in Britain.

IGas in June said there may be as much as 170 trillion cubic feet of natural gas in shale license areas in the north of the country. It conducted an analysis of some 20 wells in a 300-square-mile area where it's the exclusive license owner.

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