Paris Basin Continues to Attract Suitors Despite Uncertainty
The shale oil riches of the Paris Basin continues to attract exploration interest, even as the French government moves to ban the hydraulic fracturing technique used to extract the resource.
Canadian based Sterling Resources plans the acquisition of 26,000 net hectares of land in the Liassic resource play.
The company is adopting a wait-and-see approach on the unconventional opportunity in France, focusing spending elsewhere until the dust settles.
"We're watching this with a great deal of interest and we're talking to our peer operators in the area," said Sterling spokesman George Kesteven speaking with the Calgary Herald. "We'll pursue the land position and see how things unfold."
Vermilion Energy, the largest oil and gas producer in France from conventional resources, also holds about 71,000 net hectares in the Lias shale, which the firm says on its website could contain "world-class" resource potential.
But the hydraulic fracturing ban has stunted Vermilion's unconventional ambitions in France, according to Paul Beique, vice-president of capital markets.
"The Lias shale, I wouldn't say we've put it on the back burner. I would say we've put it in the closet," Beique commented.
"We're not going to put forward a development plan that would be targeting tight sands or shale. If you do that, then you're done. They can revoke the permit."
Beique said the unconventional land position poses little financial risk to Vermilion because it's not built into the firm's five-year plan, in terms of production forecasts.
While some players may be gearing up for a fight against the government, Vermilion is pursuing a different path.
Beique said Vermillion was " striving to work closely with (not against) the French government in forwarding our understanding of the shale oil potential in the Paris Basin and will continue on this positive path."
The Vermillion executive said that it remained too early in the process to determine if any legal action may be required, but "it would be a path of last resort."
Vermilion also has about 55,000 net hectares in the unconventional Aquitaine basin tight gas play.
A joint committee composed of seven senators and seven members of the National Assembly, the French lower house of parliament, will now be charged to develop a compromised text, which will need to be agreed by both houses to be made in law.
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