Enegi Oil Sees Massive Shale Potential in Clare Basin
Enegi Oil sees massive potential for shale gas in the Clare Basin, following early assessment of the onshore Irish prospect. The estimates relate to a licence over which Enegi holds a 100 per cent licence.
In a statement today, Enegi said that initial preliminary estimates have put the potential free gas in place of the basin at 3.62 trillion cubic feet. This estimate is based on likely average porosity of 7 per cent.
At a porosity of 3 per cent, the estimate drops to 1.55 trillion cubic feet.
For the entire licence area, Enegi has said that there is most likely resources of 13.05 trillion cubic feet or, at a minimum, 5.59 trillion cubic feet.
The estimates are based on evaluation of date gleaned from 2D seismic study of the 495-kilometre2 licence area. The study results were analysed by independent consultants Fugro Robinson which provided the estimates of the gas potential. Fugro Robinson has also indicated that the basin may be analogous to both the Marcellus and Woodford basins in terms of shale potential.
Enegi says that it now plans to apply for an exploration licence from the Department of Communications, Energy and Natural Resources in light of the results. It has already, as per its current licence terms. submitted its findings to the Department.
CEO of Enegi Alan Minty said that the company was very pleased with the results and would release its plans for the basin when it was awarded an exploration licence.
"Our findings and the report from Fugro have further endorsed Management's belief that the Clare Basin has a strong best case investment profile," he said. "The whole acreage appears to be very prospective and we are particularly excited by the area at the centre of the existing seismic grid which we have defined as high grade.
"Whilst these results are very encouraging, further exploration work is required to identify specific areas of prospectivity and potential future drilling targets. We look forward to providing details of our planned work programme and development plan once we have been awarded an Exploration Licence."