UK coalbed methane developer IGas Energy has secured regulatory approval from the government to become the operator and sole owner of its onshore licenses, the company said Wednesday.
The approval follows IGas agreeing in late January to take over Nexen Exploration UK, a subsidiary of Nexen that was its partner in the onshore licenses.
The deal now just needs approval from IGas shareholders at a meeting on March 4.
IGas aims to bring on stream the UK's first commercial CBM site this year. The company is already producing gas from its pilot production site at Doe Green in Warrington and selling electricity from on-site generation.
Following completion of the Nexen deal, IGas will have 100% ownership of 11 onshore UK exploration and development licenses, wholly own two methane drainage licenses and have a 100% interest in three offshore blocks.
IGas CEO Andrew Austin spoke to the House of Commons energy select committee Tuesday. He said that CBM could make a material contribution to UK energy needs, and that unlike shale gas production, fracking for CBM would not normally require the use of chemicals.
CBM tends to have a much flatter production curve than shale gas, producing at a more constant rate over 15-20 years, he said.
Austin said that operations to date in CBM production had not encountered much concern from local residents. He said that the main issue that had been raised with the company was concerns over the bright lights from work sites.
IGas' onshore licenses could have shale potential, but the company is focusing on CBM, also still a new industry in the UK.
