Ireland: Enegi Seeks Shale Gas Exploration License

Enegi Oil has announced that it has applied to Ireland's Petroleum Affairs Department for an exploration license to search for shale gas following the successful completion of its work program on the Clare Basin Licensing Option.

Enegi has carried out an extensive work program to procure and evaluate technical data and obtain and analyze new geological data to develop a provisional assessment of the potential of the license following the option award in February 2011

Enegi said the results of the work program indicate that – given the maturity, thickness and buried depth of the shale there – the whole area under the option remains prospective for shale gas. The firm added that the studies also highlighted an area within an existing seismic grid as being particularly high grade based on the thickness of the shale and the lack of faulting present.

In November, Enegi said that it saw massive potential for shale gas in the Clare Basin, following early assessment of the onshore prospect.

An independent report from Fugro Robertson estimated in-place resources within the acreage covered by the option of 3.6 trillion cubic feet (Tcf) based on likely average porosity of 7 per cent. Fugro Robinson has also indicated that the basin may be analogous to both the Marcellus and Woodford basins in terms of shale potential.

Enegi CEO Alan Minty commented:

"We believe the acreage covered by the Clare Basin Option is highly prospective. With this in mind and with the need to carry out further exploration work over the area, we have applied to the PAD to convert our option into an Exploration Licence which will allow us to carry out this work and to further prove up the potential that we believe this acreage holds.

"We look forward to hearing from the PAD on our application and providing further updates in due course."


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