- IGas Energy's revenues rose to £16.8m in the six months to the end of June - up from £12.1m last time and the group posted an after-tax profit of £8.0m against a loss of £25.2m a year ago.

Adjusted earnings before interest, tax, depreciation and amortisation fell to £2.5m from £5.1m.

Average production was 2,326 barrels of oil equivalent per day (1H: 2016 2,299 boepd) with operating costs of $28.5/boe (FY 2016: $27.5/boe)

IGas said: 'Anticipated average production for 12 months to 31 Dec 2017 is c.2,250 boepd, due to maintenance. We expect to exit 2017 at c.2,500 boepd.'

Chief executive Stephen Bowler said: 'We are well funded for the future and continue to be cashflow generative at current oil prices.

'We now have capital to deploy in growth projects across our conventional assets, in addition to the c.US$240m carried work programme on our shale acreage.

'Since the capital restructuring, we have been able to bring forward an active programme of maintenance.

'We have also identified incremental projects that will further underpin our conventional portfolio with resultant production levels of c.2,500 boepd and operating costs of c.US$25/bbl in the medium term.

'We will shortly commence site construction at our two sites in North Nottinghamshire, ahead of drilling.

'In the North West, we have submitted an application to conduct further tests on our site at Ellesmere Port and we are developing further applications for appraisal and flow testing across our acreage in both the North West and the East Midlands.

'Momentum in UK shale activity continues to increase with Cuadrilla now drilling its first well at Preston New Road, Third Energy expecting to start hydraulic fracturing at its KM8 well in North Yorkshire in the next few months and INEOS having submitted further applications for shale appraisal alongside its 3D seismic acquisition programme.

'Alongside this activity, given the proximity to our Weald Basin acreage, we also await with interest the results from drilling and flow tests in this area.

'Encouragingly, there is a significant level of activity onshore UK, and over the next 12 months, the industry is expected to have over half a dozen operators either drilling or flowing wells, including a number from IGas.

'We look forward to the future with excitement not only for IGas, but for the wider UK onshore industry as security of energy supply and diversification of the UK energy mix becomes ever more critical.'

At 8:01am: [LON:IGAS] Igas Energy PLC share price was +1.38p at 53.13p

Story provided by