South Wales Shale Gas Deal Collapses Over Failed Conditions

The £10 million deal between Australia’s Eden Energy and UK-based Shale Energy has been ‘formally terminated’ by the British company, as a delay has occurred in the satisfaction by Shale Energy of one of the conditions in the contract.

In late May, the Australian company agreed to sell UK shale gas and coal seam methane exploration licences for £10 million (€11.7 million). Shale Acquisition, a subsidiary of Shale Energy, would have acquired Eden Energy’s assets in South Wales and England.

‘Whilst Shale Energy has indicated that it remains confident that it will be able to satisfy the outstanding condition in the near future, this contract has nevertheless, in the meantime, been formally terminated,’ reads a note released on Monday, adding that Eden Energy is looking for an alternative agreement.  

Shale Energy can reinstate the terminated agreement and complete the acquisition in case it will be able to satisfy ‘the outstanding condition’ before an alternative agreement is concluded.