IGas to buy North Sea oil explorer

IGas – one of the few firms with permission to explore the UK’s shale gas reserves – yesterday said it has entered into an agreement with British oil and gas explorer Caithness Petroleum, proposing to buy its UK subsidiary Caithness Oil for £8.95m. Under the proposed deal, IGas would gain licences in the North Sea. The Aim-listed company said the deal is dependent on government and regulatory approval.