An Aberdeen unconventional energy firm has sold a 80% stake in a coal seam gas field in Scotland’s central belt to gas giant Ineos for an undisclosed sum.
Yesterday Ineos Upstream signed an agreement with Aberdeen-based Reach Coal Seam Gas (Reach CSG) to acquire the stake in a licence covering 155sq miles in the Midland Valley of Scotland.
The petroleum exploration and development licence (PEDL) 162 is adjacent to a further licence in which Ineos holds a majority stake.
The British Geological Survey (BGS) identified significant shale gas and oil resources in the region in its recent Midland Valley of Scotland report.
Ineos Upstream is the firm’s new oil and gas exploration and production business. The company made its first move into shale exploration in August with the purchase of its share of the shale section, PEDL 133, which covers 130 sq miles around the Grangemouth refining and petrochemical complex.
IneosUpstream chief executive, Gary Haywood, said: “I am delighted to have concluded this deal in Scotland, which is a very good fit with our existing licence interest in the adjoining PEDL 133.
“We are keen to move quickly to evaluate the potential of this resource, and determine if we can economically produce gas from this area. If we can, it will provide a local source of competitive energy and raw materials to support manufacturing jobs in Scotland. Our recent commitment to share the benefits of the gas production with the landowners and the community will also bring significant local benefits.”
Reach CSG was awarded PEDL 162 in 2008 in the UK 13th onshore licensing round.