IGas Energy plc and its partners (Egdon Resources, Dart Energy and eCorp) announced they have signed a farm-out agreement with Total E&P UK Limited (Total) under which Total will acquire a 40% interest in the UK Onshore Petroleum Exploration and Development Licences PEDL139 and PEDL140 located in the Gainsborough Trough in Lincolnshire. The licences cover an area of 240 Km2 and border PL178 and PEDL006 at Beckingham, an existing IGas producing field. IGas will become operator of the licences upon completion.

Under the terms of the agreement, Total will pay $1.6 million in back costs to the partners and fund a fully carried work programme of up to $46.5 million, with a minimum commitment of $19.5 million. At the end of the carried work programme Total will become operator of the licences. On completion of the transaction the interests in the licences will be: Total E&P UK Limited (40%), GP Energy Limited (a subsidiary of Dart Energy Europe) (17.5%), Island Gas Ltd. (a subsidiary of IGas) (14.5%), Egdon Resources UK Ltd. (14.5%), and eCorp Oil & Gas UK Ltd. (13.5%).

Completion is expected to take place not later than June 30, 2014.