This is Lincolnshire -- A $46 million project to find shale gas under Gainsborough was confirmed today. The deal was sealed between the British arm of French oil giant Total and leading British oil and gas explorers, IGas. As a result, controversial 'fracking' will take place around Beckingham in the 240 square kilometre area known as Gainsborough Trough. Meanwhile David Cameron is in Gainsborough in the today to announce cash incentives for local authorities who grant 'fracking' licences to local firms. IGas energy has announced that Total E&P UK Limited will acquire a 40% in UK onshore petroleum exploration, with development licences to cover an area of 240 square kilometers in the Gainsborough Trough area. The programme will include the acquisition of 3D seismic; the drilling and testing of a vertical exploration well and associated well pad construction; and, conditional on the success of the testing of the exploration well, the drilling and testing of a second appraisal horizontal well. Completion is expected to take place not later than 30th June 2014. Total will pay $1.6 billion in back costs to the partners who on completion of the transaction will be: Total E&P UK Limited (40%), GP Energy Limited (a subsidiary of Dart Energy Europe) (17.5%), Island Gas Ltd (a subsidiary of IGas) (14.5%), Egdon Resources UK Ltd (14.5%), and eCorp Oil & Gas UK Ltd (13.5%). As part of its ongoing plans for the development of natural gas in the North West, the Company is also announcing its intention to apply for permits for the acquisition of extensive 3D seismic surveys across a number of licence areas. This will enable IGas to identify several potential exploration and development sites in the area. Commenting Andrew Austin, CEO of IGas Energy said: "Today's announcement represents a further step in our exploration programme to develop natural gas within Britain and increases our interest in the Licences. The entry of the first major into UK shale gas licences is a further endorsement of the potential that exists following the recent commitments by Centrica and GDF Suez, and demonstrates strong support for our operating capability. "The future development of natural gas has the potential to create thousands of jobs, generate significant tax revenues, reduce our ever increasing reliance on imported coal and gas and make a positive contribution to the country's balance of payments. As operator, we will be embarking on a stakeholder programme in the area which will involve extensive community engagement." Commenting on the acquisition, Patrice de Viviès, Total's Senior Vice President for Northern Europe, said: "This opportunity is an important milestone for Total E&P UK and opens a new chapter for the subsidiary in a promising onshore play. The Group is already involved in shale gas projects in the US, Argentina, China, Australia and in Europe in Poland and in Denmark, and will leverage its expertise in this new venture in the UK."
Reported by This is 11 hours ago.
This is Lincolnshire -- A $46 million project to find shale gas under Gainsborough was confirmed today. The deal was sealed between the British arm of French oil giant Total and leading British oil and gas explorers, IGas. As a result, controversial 'fracking' will take place around Beckingham in the 240 square kilometre area known as Gainsborough Trough. Meanwhile David Cameron is in Gainsborough in the today to announce cash incentives for local authorities who grant 'fracking' licences to local firms. IGas energy has announced that Total E&P UK Limited will acquire a 40% in UK onshore petroleum exploration, with development licences to cover an area of 240 square kilometers in the Gainsborough Trough area. The programme will include the acquisition of 3D seismic; the drilling and testing of a vertical exploration well and associated well pad construction; and, conditional on the success of the testing of the exploration well, the drilling and testing of a second appraisal horizontal well. Completion is expected to take place not later than 30th June 2014. Total will pay $1.6 billion in back costs to the partners who on completion of the transaction will be: Total E&P UK Limited (40%), GP Energy Limited (a subsidiary of Dart Energy Europe) (17.5%), Island Gas Ltd (a subsidiary of IGas) (14.5%), Egdon Resources UK Ltd (14.5%), and eCorp Oil & Gas UK Ltd (13.5%). As part of its ongoing plans for the development of natural gas in the North West, the Company is also announcing its intention to apply for permits for the acquisition of extensive 3D seismic surveys across a number of licence areas. This will enable IGas to identify several potential exploration and development sites in the area. Commenting Andrew Austin, CEO of IGas Energy said: "Today's announcement represents a further step in our exploration programme to develop natural gas within Britain and increases our interest in the Licences. The entry of the first major into UK shale gas licences is a further endorsement of the potential that exists following the recent commitments by Centrica and GDF Suez, and demonstrates strong support for our operating capability. "The future development of natural gas has the potential to create thousands of jobs, generate significant tax revenues, reduce our ever increasing reliance on imported coal and gas and make a positive contribution to the country's balance of payments. As operator, we will be embarking on a stakeholder programme in the area which will involve extensive community engagement." Commenting on the acquisition, Patrice de Viviès, Total's Senior Vice President for Northern Europe, said: "This opportunity is an important milestone for Total E&P UK and opens a new chapter for the subsidiary in a promising onshore play. The Group is already involved in shale gas projects in the US, Argentina, China, Australia and in Europe in Poland and in Denmark, and will leverage its expertise in this new venture in the UK."
Reported by This is 11 hours ago.