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Thursday 23 February 2012
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Unconventional Resources - Underground Coal Gasification and Shale Gas

East Midlands Unconventionals

Europa has been awarded two licences (90%) by the UK Coal Authority to investigate underground coal gasification of virgin coals along the eastern coast of England.  These licences are situated in areas with deep coal measures with little structural complexity and a proximity to existing gas and utility infrastructure.

Underground Coal Gasification (UCG) is a developing technology that recovers up to 80% of the calorific value of in situ coal by a process of controlled combustion.  UCG, when combined with CO2 storage in the depleted coal seams, creates a source of energy which rivals nuclear for low emissions and has lower unit costs than conventional gas-fired power stations.

With only 30% utilisation rate for the coals, the estimated potential UCG energy resource in these two licence areas is 36EJ or 6 billion barrels of oil equivalent.

In addition, the Company's large holding of over 600km2 of the Humber Basin, where there is potential for significant shale gas resources from Carboniferous basinal shales.  Whilst this is being evaluated, activities in shale gas exploration elsewhere in the UK Carboniferous basins are being monitored with interest.