By OGJ editors
HOUSTON, July 20 – SSE Energy Supply Ltd., a UK utility, will purchase coalbed methane from development wells to be drilled on PEDL 133 in the UK by Dart Energy Ltd., Brisbane.
SSE Energy Supply is 50% owned by Scotland Gas Networks, which owns and operates a gas grid near PEDL 133. The gas contract is for 5 years starting in April 2013, extendable by mutual agreement, at a rate linked to UK prevailing prices which are currently $11/Mcf.
The agreement is sized to ensure that Dart is able to deliver all current PEDL 133 proved and probable reserves during the term. There is no minimum delivery requirement. Consulting engineers estimate 43 bcf of proved and probable reserves, 81 bcf of proved, probable, and possible reserves, and 607 bcf of contingent resource.
Dart Energy estimated that up to 20 wells will be required in the ramp-up to first sales, and thereafter 10-12 wells/year would sustain production rates.