UK: Alkane Energy and Aberdeen Drilling Management Sign CBM Deal

Alternative energy company Alkane Energy has announced today that it has signed a deal with Aberdeen Drilling Management (ADM) to explore for coal-bed methane on two of Alkane's licences in the United Kingdom. The agreement will see ADM performing geological research and finalising drilling commitments on the two licences in the East Midlands and  North West of England.

The two licences, PEDL 191 and PEDL 90, cover a total area 133 square kilometres where coal-bed methane potential has already been identified. According to research by Tesla Exploration International Limited, both licence areas have combined potential reserves of aroud 385 billion cubic feet of gas.

Through the deal, ADM will gain a 50 per cent interest in Alkane's interest in each licence, once a CBM well has been completed in each licence area. 

The partnership agreement with ADM is a first for Alkane Energy but continues Alkane's expansion into UK-focused coal-bed methane projects. Earlier this month, Alkane successfully acquired Greenpark Energy, granting Alkane access to seven coal-bed methane exploitation licences, plant and other equipment with a value of £9 million, and eight megawatts (MW) of coal-bed methane capacity from three sites.

"'I am delighted to be able to announce this agreement with ADM," CEO of Alkane Neil O'Brien said today.

"This partnership, our first in CBM, is another important step in Alkane's development. Whilst maintaining focus on our core business, we continue to exploit new and related business streams where our skills and capabilities are transferable, and in the case of CBM exploration offer very significant upside potential for the Company.

"This partnership further builds Alkane's footprint in the gas to power sector and follows the recent acquisition of Greenpark Energy's CMM (coal mine methane) operations."