GDF SUEZ E&P UK has entered into an agreement with Dart Energy to acquire a 25% share in 13 UK onshore licences located in Cheshire and the East Midlands, overlying the Bowland Shale. Dart Energy will retain a 75% interest and operatorship of the licences.This acquisition represents GDF SUEZ first entry into licences with shale gas potential and onshore exploration activities in the UK.
“We are very confident about the potential of shale gas in the UK, and its anticipated contributions to UK energy security. GDF SUEZ is pleased to enter its first investment in UK shale gas as it complements the large presence of the Group in the UK. We look forward to working with our partner, Dart Energy, to unlock the potential of these licences”, says Jean-Marie Dauger, Executive Vice-President GDF SUEZ, in charge of the Global Gas & LNG business line.
Under the terms of the agreement, GDF SUEZ E&P UK will pay Dart Energy an upfront cash consideration of US$12 million at closing and will carry Dart Energy on exploration and appraisal costs of US$27 million.
Subject to Department of Energy and Climate Change (DECC) approval, this deal will allow GDF SUEZ E&P UK and Dart Energy to accelerate the exploration and appraisal of the potential of these licence areas. The prospective licence areas cover 1378 square kilometres. As part of the initial work programme, the partners plan to drill a number of exploration wells including up to 4 wells targeting shale gas potential in different areas of the Bowland basin and other wells targeting Coal Bed Methane (CBM).
GDF SUEZ is an operator with a recognized onshore expertise in unconventional gas located in Germany, in addition to offshore experience both in the Netherlands and the United Kingdom. Alongside the farm-out, Dart Energy and GDF SUEZ have established a broader strategic cooperation, focused on unconventional gas activities. This includes provision of various support services from GDF SUEZ and its partner company SUEZ Environnement in the field of environmental service and water management, and the sharing of best practice.
For more information about related Opportunities and Key Players visit Shale Gas Projects