LONDON (Alliance News) - Igas Energy PLC on Monday reported further hydrocarbon discoveries at a well on the Springs Road project in Nottinghamshire.
Following work at the SR-01 well, Igas has found a hydrocarbon-bearing shale of over 250 metres, including both the upper and lower Bowland Shale.
Igas saw "significant" gas observations throughout the shale and also within sands in another sequence.
"We have now completed this phase of data acquisition which included the recovery of approximately 150 metres of shale core and an extensive wireline logging program across the Millstone Grit, and Upper and Lower Bowland Shale," said Igas.
"Petrophysical and core analysis is currently being conducted, which will give us further insight into the resource potential and shale characterisation that will be utilised for future appraisal and development of the wider east Midlands area."
Igas hopes to complete the majority of data analysis during the second quarter, when it will give a further update.
It is now looking at the third target, with drilling currently going quicker than anticipated.
Chief Executive Stephen Bowler said: "I am delighted to report we have recovered high quality hydrocarbon bearing cores at our Springs Road site. The data gathered to date shows there are significant prospective resources in our east Midlands acreage and is another important step for the UK onshore industry.
"There is the potential for the gas beneath our feet to contribute materially to the UK energy needs. Gas is important for our energy requirements, not least because over 80% of the homes across the country are heated by gas," he added.
"These results come at a time when we are importing more and more gas from overseas and could stimulate investment in the east Midlands basin as well as improving the country's balance of payments."
The Igas statement was noted by Egdon Resources PLC, which has a 15% interest in the PEDL140 licence on which the well is situated.
Igas shares were 15% higher on Monday at 90 pence each, with Egdon up 5.2% at 7.10p.
