Shale Energy plc has bought-out Eden’s UK assets — meaning that they’ve become one of the prime movers in the future of UK extreme energy in South Wales and Southern England (including Somerset).
See http://www.shale-energy.co.uk/sites.php for their map. Full statement on Eden web site —
http://www.edenenergy.com.au/pdfs/c6b848f1e3ddd7b9f4f1c26d7f4e966e.pdf
They still have to raise the capital for investment in new projects by November to complete the deal though, which in itself is a test of how fast/far the UK scene will develop over the next few years.
Eden Energy to sell all of its UK shale gas portfolio to Shale Energy
Shale Energy Insider, 17th September 2013
Perth-based Eden Energy has signed a deal to sell all of its UK shale
gas – as well as coal seam methane – portfolio to London-based unlisted
company Shale Energy for A$19.3 million (view press release). The deal
has been struck on more favourable and significantly higher terms than
the original May sale transaction which collapsed in August.
The new agreement, which includes a non-refundable A$94,291 deposit, a
further cash payment at settlement of A$1.88 million and a separate A
$410,843 placement by Shale for 12-month escrowed shares in the
Australian company, will see Eden by November add more than A$2.39
million to its cash in bank. In addition, the sale terms will see the
Eden emerge with a 29.9% direct stake in Shale Energy – giving it
exposure to any future discoveries and gas developments by shale in the
England and Wales-based assets acquired from Eden.
Eden terminated the original arrangement last month, to allow it to
pursue alternative sales options with its UK joint venture partner,
after Shale was unable to meet on time a condition precedent.
Eden Executive Chairman, Mr Greg Solomon, said that Shale Energy, which
is securing a strong management team, had remained keen to be the
ultimate buyer of the assets and this had allowed Eden to negotiate new
and higher value sale terms.
“We have re-instated our relationship with Shale Energy but on revised
terms that will inject approximately an additional A$683,000 cash into
Eden plus a further A$1.7 million worth of shares in Shale compared to
the original May deal,” Solomon said.
The sale assets comprise Eden’s 50% joint venture interests in 17
Petroleum and Development Licences (PEDLs) in England and South Wales
and its 100% interest in one further PEDL in South Wales.
The deal remains conditional on Shale Energy completing its capital
raising by November 2013.
Previously announced independent reports on Eden’s UK gas assets found
that the licences have the potential to contain significant quantities
of hydrocarbons.
“Australia’s offshore Gorgon gas field in Western Australia is reported
to contain approximately 40TCF of gas and is planned to produce 15
million tonnes of LNG per year for between 40-60 years so, although it
is very early days and is very much dependent upon how gas is actually
there and how much is recoverable, that’s the sort of potential these UK
assets could perhaps offer,” said Solomon.
“The UK is now an importer of natural gas and on a total country
consumption basis, the aggregate of the potential of our UK assets makes
them a very significant amount of gas in the context of the UK gas
market,” he added.
Shale exploration in the UK has been supported by the government but
protested by environmentalists. Earlier this month, the Department of
Energy and Climate Change’s chief scientific adviser, David Mackay,
announced that shale gas production in Britain should have no adverse
effects on the UK’s ability to reach its targets for climate change to
allay fears about environmental impact.
Posted on: September 20, 2013