IGas released a press release today, 31st October 2016 as follows:
IGas Energy confirms, further to last week’s announcement of Wednesday 26 October and press reports over the weekend, that as it seeks a capital structure appropriate for the business in the current operating environment it continues to discuss a range of options with a number of key stakeholders. Those include discussions with bondholder Trans European Oil & Gas (“TEOG”) (whose largest shareholder is understood to be KKR) who has proposed a sale of the company’s conventional assets.
Now this is indeed interesting stuff as TEOG CEO Roland Wessel founded Star Energy the company whose assets consisted of conventional oil field holdings in the UK that IGas bought in 2012. It sure looks like Roland and his mate on the board of TEOG Melvyn Horgan Chief Technical Officer are keen to get those assets back at a bargain price. Attached is the Periodic review of Mining sites prepared by the Estates Manager of Star Energy Oil & Gas Ltd dated November 2011. That same Estates Manager was seemingly part of the package bought from Star Energy and currently looks after assets in the East Midlands on behalf of IGas Plc. The transition back to Star ownership, if it happened would likely be quite seamless in those same capable hands. The attachment itself concerns part of the jewel in the crown that is the Welton oilfield producing around 30,000 tonnes of crude oil per year. Much work has been undertaken at Welton developing and refining certain non conventional techniques for conventional oil and gas fields, including water injection into tired oilfields to stimulate oil yields. The home page of TEOG’s website lists their expertise as “Considered onshore hydrocarbon extraction utilising non-conventional techniques in conventional oil and gas fields”.
Looks like Roland’s Star is on the rise again!