GDF Suez Invests $39 Million in British Unconventional Gas
France’s GDF SUEZ bets on shale gas in the UK, investing up to $39 million for a 25% interest in 13 licences in Cheshire and the East Midlands. The agreement includes a $12 million cash payment to Australia’s Dart Energy and the funding of a joint unconventional exploration and appraisal program up to $27 million.
“We are very confident about the potential of shale gas in the UK, and its anticipated contributions to UK energy security… We look forward to working with our partner, Dart Energy, to unlock the potential of these licences,” Jean-Marie Dauger, Executive Vice-President of GDF SUEZ, commented on Tuesday.
Dart will sell 25% working interest in each licence, retaining a 75% share and the operatorship of each licence.
The farm-out agreement signed by Dart Energy is part of a broader strategic cooperation. It relates to 13 licences in England and Wales out of a total of 31 in Dart’s portfolio.
Dart and GDF SUEZ will proceed with the exploration and appraisal program over a three-year period. According to the note realesed by Dart Energy, it will include drilling up to four shale gas exploration wells in different areas of the Bowland basin and ten Coal Bed Methane (CBM) exploration wells.
The farm-out is subject to the approval of UK Department of Energy & Climate Control.
A recent study by the United Kingdom Department of Energy and Climate Change and the British Geological Survey estimates shale gas resource potential in the Bowland Basin ranging between 822 Tcf (low estimate) to 2,281 Tcf (high estimate) with 1,329 Tcf as the best estimate.
“We are especially pleased that our new partner is GDF SUEZ, a group with significant capabilities, extensive experience and existing businesses across the gas value chain in the U.K. and internationally,” John McGoldrick, Dart Chief Executive Officer, commented.
Paris-based GDF SUEZ is the largest independent power producer in the world, reporting annual revenues over $120 billion in 2012.
In August, GDF SUEZ expressed its intention to explore for shale oil and gas in the UK, Germany, Poland and Latin America.