Exxon Could Take Stake in English Shale Deposit

Exxon Mobil, the US-based energy company, is in talks to buy a stake in the Bowland shale project from IGas Energy, media reported at the weekend.

The Bowland deposit is the site of the United Kingdom's first shale gas project, being developed by Cuadrilla Resources. The British government announced last Thursday that it would allow hydraulic fracturing (fracking) in shale extraction, after an 18-month suspension cause by two minor earthquakes in Lancashire, the centre of the Bowland area.

London's Sunday Times and national newspaper The Australian, both owned by News Corporation, reported that IGas Energy plc had been looking for a partner for several months. Exxon was now in active talks, while Royal Dutch Shell, Total, and Statoil were also considering a stake.

When IGas announced the auction of a stake in June, it said it would be completed in "four to five months".

Bankers said the process could lead to a takeover of IGas, valued at £125 million (€145m) at Friday's market close. IGas declined to comment.

In its Outlook for Energy: the View to 2040, published last week, Exxon said it expected natural gas - "the fastest growing major fuel" to overtake coal by 2025 as the second most used fuel in the world.