Realm reported on its successful land acquisition in Spain for shale gas exploration.
Realm Energy, in collaboration with Halliburton Consulting, has been evaluating shale plays in numerous sedimentary basins in Spain for approximately two years. Following this detailed evaluation, the Company submitted 10 applications in five discrete sedimentary basins, collectively comprising over 2.2 million acres (8,903 km2).
Realm Energy confirms it has now been formally awarded two permits, totaling 212,099 acres (858 km2) in the Cantabrian Basin of Northern Spain, for a period of six years.
Regarding the eight permit applications still in process, the Hydrocarbons Department of the Spanish Ministry of Industry, Tourism & Commerce has formally advised Realm Energy that it was also the successful applicant on six of the permits, which collectively total 1,512,383 acres (6,120 km2) and are now in process for formal award. Of the 10 permits applied for (covering 2.2 million acres), the success of only two permits (covering 503,887 acres (2,039 km2) is yet to be determined.
The minimum work programs on the 212,099 acres formally awarded and the 1,512,383 acres undergoing formal award, collectively 1,724,482 acres (6,978 km2), require the Company to acquire approximately 600 km of 2D seismic in the first two years. In years 3 & 4, the Company is required to acquire 300-900 km of 2D seismic, and drill and test three vertical wells. In years 5 & 6, the Company's minimum commitment is to drill and test five additional vertical wells. These selected permits all have excellent pipeline infrastructure.
The Company believes the shales in all concessions are thermally mature and may be prospective for natural gas production. Initial analysis of existing well logs indicates that primary targets are likely to be Eocene, Cretaceous and Carboniferous shales at depths ranging from 6,000-11,000 feet. Other preliminary mineralogy indications include:
Craig Steinke, Chairman & CEO commented, "As a result of this recent success, Realm Energy is now well positioned in five discrete sedimentary basins making the Company one of the largest landholders for shale gas exploration in Spain. This presents a tremendous growth opportunity for the Company as Spain also has a proven and stable fiscal system that ranks in the top 10% worldwide. Economic conditions are also attractive, as Spain is currently dependent on imports for its natural gas supply, and gas prices in the country are typically at a premium to prices found elsewhere in Western Europe."
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