LONDON (ShareCast) - (Sharecast News) - Exploration and production group IGas has acquired British deep geothermal heat projects developer GT Energy.
IGas said on Wednesday that it will make an initial payment of £500,000 for GT, which will be satisfied by the issue of 2.22m new ordinary shares.

The AIM-listed firm added that the maximum consideration payable to the sellers under their share purchase agreement was £12.0m.

IGas stated the acquisition was in line with its strategy of diversifying into the wider UK energy market whilst also leveraging its core competencies as a UK onshore operator.

Chief executive Stephen Bowler said: "Whilst there is a clear need for oil and gas in a 2050 net-zero environment, it is our intention to also play an important role in the UK's energy transition.

"The acquisition of GT Energy provides us with an exciting entry point into this highly attractive, growth market, one that has seen material progress in Europe over the past five years."

As of 0830 BST, IGas shares were up 4.40% at 12.68p.

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