Report upgrades estimate of UK shale gas capacity

Hydrocarbons exploration and production firm Egdon Resources has revealed that an independent report has estimated that its UK shale gas licences hold around 18 trillion cubic feet (TCF) of gas.

ERC Equipoise (ERCE) completed an assessment of shale gas potential in seven of Egdon’s licences in the north of England, reporting total mean undiscovered gas initially in place (GIIP) of 18 TCF, compared to a previous report in 2013, which showed mean undiscovered GIIP of 1.76 TCF for licences PEDL139 and PEDL140.

The latest estimate raises the figure for the two licences to 2.53 TCF and with a further five licences has resulted in a ten-fold increase.

Egdon Resources chairman Philip Stephens said that given the high level of interest and recent transactions, the company anticipates its UK shale-gas assets to be an increasing near-term value driver for the business.

"We will participate in the 14th UK Onshore Licensing Round expected during 2014 and will continue to review new opportunities for growth," Stephens added.

"The carried drilling on our Gainsborough Trough licences is now anticipated to commence early in 2015, subject of course to receipt of the necessary consents."

Egdon currently owns interests in 27 licences in the UK and France, and sold parts of its shale gas licences to French oil major Total earlier this year. The company has an active programme of exploration, appraisal and development within its oil and gas assets portfolio, and said that it is continuing to review opportunities for acquisition and consolidation within the sector.