London-listed Alkane Energy is in talks with several companies in the shale gas industry about taking a partnership share in its British onshore concessions likely to contain sizeable shale gas resources.
Britain has one of Europe’s most active shale gas markets thanks to tax incentives offered to producers by the government in an effort to replicate the transformation of the US energy landscape from huge shale gas extraction.
France’s Total and Britain’s Centrica have already bought into UK shale gas concessions and a government licensing round this year is set to attract other players.
Alkane, which specialises in extracting onshore gas for power generation, owns more than 800 square km of onshore oil and gas licences in Britain. However, the company lacks experience in shale gas extraction and is now in talks to find a partner to help it draw the potentially valuable fossil fuel out of the ground.
“We’re discussing it with a number of the current players. I would be extremely hopeful of announcing something this year,” chief executive Neil O’Brien said yesterday.
The next licensing round for onshore concessions is set to take place early this summer. Mr O’Brien declined to name any of the companies Alkane is talking to or indicate the potential size of shale gas deposits.
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