Ineos Acquires New Shale Gas License for Scotland
Ineos Upstream, the new oil and gas exploration arm of the Swiss-based petrochemical group unit, has taken an 80% stake in a UK shale gas exploration license owned by Reach Coal Seam Gas.
Like the 51% stake in a license the privately owned group acquired in August from BG Group, the new exploitation area is located in Scotland's Midland Valley.
Ineos has not revealed financial details of either acquisition.
The 400 km² PEDL 162 site adjoins the earlier acquired 329 km² PEDL 133 site area, which includes Ineos' mammoth production complex at Grangemouth. The group said it intends to operate the drilling project itself if the exploration phase uncovers sufficient reserves and will also fund the initial appraisal activity.
To carry out the project, Ineos has engaged a team of "world leading" specialists from Mitchell Energy, the company it said is credited with perfecting shale gas extraction in the US.
"We are keen to move quickly to evaluate the potential of this resource, and determine if we can economically produce gas from this area," said Gary Haywood, CEO of Ineos Upstream.
