Public Doc PEDL Regs 2008 As per23 Jul 2014 00:10
Quote an Example of the P & P Pressure in the public domain. Relinquishment Report PEDL 221 and PEDL 223 1
Licences
PEDL 221 – Block ST09
PEDL 223 – Block ST19b
PEDL 221 and PEDL 223 were both awarded to Centrica Resources Ltd (“Centrica”) on 29
September 2008, effective from 1 July 2008. The initial terms of each expires on 30 June
2014. PEDL 221 and PEDL 223 were both acquired by Adamo Energy (UK) Ltd (“Adamo”)
on 2 September 2011.
Work Commitments
PEDL 221
The licensee was required to obtain 37km of 2D seismic data and drill two wells to a depth of
800m.This work has not been undertaken.
PEDL 223
The licensee was required to obtain 37km of 2D seismic data and drill one well to a depth of
800m.This work has not been undertaken.
Synopsis
Adamo conducted a review of the prospectively of these two licences and elected to
surrender the licence for the following reasons:
1. The only likely source of hydrocarbons was considered to be coal bed methane. The
models of potential shale gas basins in South Wales do not include the areas
covered by these licences;
2. The coal fields are located in close proximity to heavily populated areas;
3. The coal beds occur beneath the Pennant sandstone aquifers which historically
caused significant problems when coal mining was conducted and resulted in some
mines apparently being closed due to flooding.
4. The UK Environment Agency, in a report titled “Groundwater Quality Review: South
East Valleys Carboniferous Coal Measures”, reported in relation to the characteristics
and contained quantity of water in the Pennant measures :
“ Higher Yields, up to 430m3/d. Well cemented sandstones formed a naturally
layered aquifer. Mining subsidence created groundwater flow pathways and
leads to hydraulic continuity between aquifer systems, where aquitards would
have occurred.”
5. Centrica reviewed in detail the old coal mining records and modelled of the volume of
coal mined from these licences and the volume of the resulting voids. Whilst much of
the coal remains in situ in the coal seams, and would be likely to contain reasonable
quantities of methane, a significant amount of coal was extracted from a number of
different coal seams over a long period, and these are now considered likely to have
been fully or at least partially filled with water.
Relinquishment Report
PEDL 221 and PEDL 223
2
6. These new possible underground reservoirs significantly accentuate the likely
difficulties that extraction of coal bed methane from the coal seams occurring
beneath the Pennant sandstone aquifer would encounter, due to both the anticipated
very high flow rate and the extremely high volume of water itself emanating from both
these new underground reservoirs and the aquifer in the sandstone itself.
7. Additionally, if the coal bed methane were to be extracted from these licences, due to
the anticipated very large quantity of wa
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