IGas Closes Acquisition Of Nexen Exploration U.K., Gaining 1.7BCF

Closed acquisition of co., gaining 1.7BCF contingent resources.

IGas Energy Plc, London, (London AIM: IGAS) has closed its acquisition Nexen Exploration U.K. Ltd., a subsidiary of Nexen Inc., Calgary, (NYSE: NXY) for 39.7 million shares in a deal valued at approximately US$32 million.

The acquisition increases IGas' contingent recoverable reserves by 115% to 1.74 billion cubic feet (290 million barrels of oil equivalent) and nearly triples its current production. The agreement also gives IGas access to Nexen's unconventional gas technology.

IGas chief executive Andrew Austin says, "IGas is more than doubling its contingent recoverable resources, with a consequential effect on future production. As a result of this deal, we will have enough recoverable gas to supply electricity to 15% of U.K. homes for 15 years."

IGas now owns 11 petroleum exploration and development licenses in the U.K., two methane drainage licenses, and three offshore blocks under one seaward petroleum production license.

Nexen will be represented by a director on the IGas board.