European Gas Limited awarded new exploration permit with 5 year term in France

Wednesday, Jul 28, 2010

French Government has formally granted its wholly-owned subsidiary Gazonor S.A. (Gazonor) a new exploration permit 'Sud Midi' (located in the Nord Pas de Calais region).

The 'Sud Midi' permit increases EGL's portfolio and secures its position among the largest CBM and unconventional gas permit holders in Western Europe. EGL has a 100% working interest.

EGL's CEO, Peter Cockcroft, said, 'This is an exciting addition to our current exploration and production asset portfolio located in the largest coal basin in France. The Sud Midi permit is ideally located relative to EGL's existing production facilities, thus any exploration success in the Sud Midi permit will be relatively easy to commercialise and bring on stream, selling into well established markets.'

This exploration permit is adjacent to EGL's Gazonor Production Concession, and, together with the Valenciennois Exploration Permit, forms a contiguous permit area of 1,352 km2. The permit area covers 929 km² and is located in the Nord Pas de Calais region (North of France). The permit is granted for a five year term until July 23rd 2015 with a total expenditure commitment of €1.9 million.

Source: Red Mist Media