Total Increases UK Shale Portfolio with Option on Licence in Lincolnshire

Total E&P UK signed an £1,530,025 agreement with Edgon, Blackland and Stelinmatvic for an option on a 64 square kilometres licence in Licolnshire. In this way, it will have the chance to increase its portfolio in the UK unconventional gas industry. 

Total will have an option to farm-in to the licence PEDL209, to exercise by 31 December 2015. Total could earn a 50% interest by paying 100% of an exploration program of up to £13.47 million. 

“The agreement demonstrates further progress with our strategy of delivering value from our unconventional resources and provides a meaningful up-front cash payment and the expectation of funding of a substantial shale-gas exploration programme in this highly prospective part of the Gainsborough Trough,” Mark Abbott, Managing Director of Egdon, commented in a note released on Thursday.

Earlier in January, Total acquired a 40% interest in two shale gas exploration licences in the East Midlands region.