France-based GDF Suez would be purchasing assets in the UK shale from Dart Energy. Dart Energy said GDF would buy a 25% stake in 13 licenses. The assets were in the Bowland basin located in Northern England. The statement from the Australian company revealed that GDF would pay USD 12 million in cash for the acquisition. The largest supplier of natural gas in France would also take care of 75% or up to USD 27 million for the exploration costs of Dart Energy for a period of three years.
Dart said the deal included GDF's support for the drilling of about 14 exploration wells. Four of these wells would be exploring for the presence of shale gas while the remaining 10 would look for coal-bed methane.
Head of GDF Suez's gas unit Jean-Marie Dauger said the investment would complement the company's presence in the UK. "We are very confident about the potential of shale gas in the U.K. and its anticipated contributions to U.K. energy security," Dauger added.
Join the Conversation