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Centrica Secures Three Exploration Licenses to Drill for Gas

Posted on: Friday, 4 July 2008, 09:00 CDT

Centrica, the parent company of British Gas, has secured interests in three exploration licenses to drill for gas within the coal beds of South Wales.

As part of the UK government's 13th Onshore Licensing round, Centrica has secured interests in three licenses close to Rhondda, Caerphilly and Pontypridd in South Wales. The company will hold 100% interest in two licenses, with a shared interest in a third.

Centrica will commence pre-development studies later in 2008, with a planning application expected in late 2009. Subject to planning and internal approvals, drilling could commence in 2010, with possible development by 2014.

Coal bed methane, which is an emerging technology used to drill into depleted coal fields to access gas trapped within the rock structures, is relatively untried within the UK, but well developed in North America, including at Centrica's North American subsidiary Direct Energy.

Sam Laidlaw, CEO of Centrica, said: "As part of our continued investment program to secure long term energy supplies for our British Gas customers, emerging technologies such as coal bed methane offer an opportunity to maximize the UK's own energy resources."

Source: Datamonitor

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