France awards Shale Gas permits

French energy authorities have officially awarded shale gas exploration permits  in the southeastern part of the country.

Total E&P France and a unit of Devon Energy Corp., were awarded Montelimar Permit for 5 years and an outlay of €37.8 million. The exploration permit, granted for a five-year period, covers a surface of 4,327 square kilometers that spans from the south of Valence to the region of Montpellier, in the south of France. Total also announced having acquired Devon’s French affiliate. Through this transaction, Total will hold a 100% stake in the license pending ministerial approval.

Schuepbach Energy LLC, Dale Gas Partners LP of Texas, and  GDF Suez, received acreage in two areas; the Villeneuve-de-Berg Permit covers 931 sq km, and the Nant Permit covers 4,414 sq km. Both were awarded for 3 years. The Berg Permit requires an outlay of  €39.9 million for seismic reprocessing, shooting 30 line-km of new seismic, and drilling two wells to 2,000-3,200 m, the last 1,000 m laterally with a hydraulic frac in the shale. The Nant Permit program is €1.7 million for seismic reprocessing, shooting 30 line-km, and drilling a 500-m well.

The ministry awarded the  216 sq km Navacelle Permit to Egdon Resources (New Venture) Ltd. of the UK, Eagle Energy Ltd., and YCI Energy Ltd. for 5 years.

Mouvoil SA of Switzerland won the Bassin d'Ales Permit for 5 years and €1 million for seismic and drilling of one well.

Bridgeoil Ltd. and Diamoco Energy were awarded the 503-sq-km Plaine d'Ales Permit for 4 years. Work program is €1.5 million for seismic reprocessing and drilling a new well or re-entering a well initially drilled in 1949 that found heavy crude.

An application by Cevennes Petroleum Development Ltd. for two other permits was rejected.

Source: Total SA, Oil & Gas Journal