Eden Energy Sells UK Gas Assets to Shale Energy

Perth based Eden Energy has executed a conditional Heads of Terms to sell its entire UK coal seam methane and shale gas portfolio for £10.061million to be satisfied by a cash payment of £750,000 and with the balance to be paid in fully paid ordinary shares in presently unlisted UK public company Shale Energy.

The sale assets comprise Eden’s 50% joint venture i nterests in 17 Petroleum and Development Licences (PEDLs) in England and So th Wales and its 100% interest in a further 3 PEDLs in South Wales (Eden ’s UK Licence Interests).

As announced by Eden before, independent experts (RPS in relation to s hale gas and RISC in relation to coal seam methane) had reported that these licences have the potential to contain significant quantities of hydrocarbons. More specifically, that announcement reported that:

RPS in relation to the shale gas had reported:

– unrisked P90 Resource Volumes of Shale Gas in the Numurian Measures on 7 Petroleum Exploration and Development Licences (PED Ls) in South Wales in which Eden holds a 50% interest (covering a prospective area of 806 square kilometres) of:

• Volume of Gas Initially in Place (GIIP) – 34.198 TC F (Eden’s share -17.099 TCF)
• Recoverable Volume – 12.799 TCF of gas (Eden’s shar e – 6.349 TCF); and

– RISC in relation to coal seam methane had reported that:

• the estimated Gross Contingent Resources of Coal Bed Methane contained in the 10 PEDLs in South Wales (covering a prospective are a of 247 square kilometres) in which Eden holds an interest are:
• A 1C to 3C range of 687-1,363 BCF with a 2C estimate of 980 BCF , and
• that the estimated Gross unrisked Prospective Resource of Coal Bed Methane contained in the 17 PEDLs in South Wales, Kent and Bristol Somerset (covering a prospective area of 1068 square kilometres) in which Eden holds an interest are:
• A low to high estimate of 1,903-4,990 BCF with a best estimate of 3,088 BCF.

[mappress]
LNG World News Staff, May 29, 2013; Image: Eden Energy