UK shale does not lack big estimates Friday, March 07, 2014 by Proactive Investors
UK shale does not lack big estimates
Whilst the UK shale play may lag behind some of the world's other emerging shale regions in terms of well count, one thing it does not lack is big estimates.
The number of shale gas wells in England can be counted on one hand, yet each programme sees the prior resource estimate tumble to be replaced by another more punchy number.
Cuadrilla, the first company to drill UK shale wells, estimated its acreage in Lancashire could contain a truly huge 200 trillion cubic feet of gas (tcf) having drilled just one well.
Now, two wells and 100 square kilometres of seismic exploration later, the company reckons there is "closer to 330tcf" in the group's acreage alone. Huw Clarke, Cuadrilla's exploration geologist, spoke of this additional resource potential in a presentation at an industry conference in London.
The event was hosted by the British Geological Survey (BGS) which itself estimated last year that the Bowland basin, where Cuadrilla's assets are found, could host an eye-watering 1,300 tcf of gas.
Such 'blue sky thinking' has yet to be proven and, of course, will require a lot of drilling if these numbers are to be firmed up.
Nevertheless, the weight of fresh corporate backing for UK shale projects in recent months certainly provides some endorsement. Deals have brought in the likes of Centrica, EDF and Total to partner the smaller early movers such as IGas, Dart Energy and Egdon Resources.
Cuadrilla, now backed by British Gas owner Centrica, is expected to lead the stepping up of drilling activity, with plans to drill as many as eight new wells starting later this year.
These wells will be drilled, fracked and tested. The results could be pivotal in determining the commercial potential of the apparently abundant gas resource.
"If you can get one of those eight wells to show that it is commercially viable, I think that would be a strong push to take it to the next stage which would be a field development plan," Clarke told conference goers.
