Government Joins in Spanish Unconventional Gas Venture

A Spanish regional government is joining with two based U.S. companies in a joint venture to explore unconventional natural gas deposits in Basque Country in northern Spain.

Basque regional leader Patxi Lopez made the announcement while traveling with regional business leaders in Dallas, Texas.

Surveys in Álava have detected the presence of unconventional gas in an amount that would be the equivalent to Spain's annual consumption for five years. 

The Basque Energy Board, through the Society of Hydrocarbons Euskadi, identified 13 potential unconventional gas holdings in Álava. Specifically, in the area known as Gran Enara.

Data released by Lopez, along with the Basque Minister of Industry, Bernabé Unda, pointed to potentially 180 billion cubic meters of natural gas in the deposits in the area south of Alava -- enough to meet Spain's demand for five years.

The Basque government will invest 40 million euros in the project while the two privately held U.S. companies, Heyco Energy and Cambria Europe, will invest 60 million euros.

Two wells are to be drilled initially see if extraction is technically feasible and economically viable.

The project will be held 42.8 percent by the government through Basque Energy, with Heyco holding 21.8 percent and Cambria Europe having a 35.3 percent interest.