Irvine Energy Plc is an independent oil and gas exploration and production company focused on the development of onshore projects, both conventional and unconventional. Incorporated in the UK, the company operates exclusively in the U.S., currently working on projects within the highly prospective Kansas/Oklahoma region. Historical production in the area dates back to the 1800’s and cumulative outputs are in the billions of barrels and trillions of cubic feet for oil and gas respectively. The company currently has interests in three projects, the Niobrara project in Kansas, the Kansas project, and the Oklahoma project, jointly developed with one local partner who is also the operator for all projects. By combining conventional and unconventional plays, the company hopes to assemble a balanced portfolio of low risk and high capital yet efficient programmes.
Irvine Energy has 50 percent interest in the Niobrara project, which holds mainly shallow chalk gas. About one hundred wells have been drilled progressively over the years and many have quickly come on line to sales. The shallow nature of the gas formation makes it possible that the wells can be drilled and completed in surprisingly short periods, even less than a week, at very low cost.
75 percent interest has been obtained by the company in the Kansas project. The project includes many oil-rich areas that have a prolific oil production history. What it has been lacking is the application of the state-of-the-art exploration technique, like 3D seismic. This provides significant upside potential for Irvine Energy as an exploration company. Various exploration drilling has been initiated and surveys have identified several prospects.
The company holds also 50 percent interest in the Oklahoma project, which contains both conventional oil and unconventional gas. Some over 20 conventional production wells were included when the company purchased the property. Currently the company is focused on areas where unconventional shale gas exists. Vertical wells, and horizontal ones are being planned. Successful development of the shale could be huge with an estimate of net recoverable of over 200 billion cubic feet of gas.
Shares (IVE) of Irvine Energy Plc is currently delisted from LSE’s AIM sub-market.