News

January 30, 2009

European Gas Limited Is Awarded Additional Acreage In Northern France Where It Has Ambitious Plans For CBM and CMM Gas Production

European Gas Limited has transformed itself not once but twice over the past five years. In 2004 the company, then known as Kimberley Oil, was focused on the Canning Basin of Western Australia. This remote exploration project was not a successful venture for the ASX-listed firm and by 2006 the company had re-invented itself, trading under a new name to reflect its new focus on the coal bed methane (CBM) potential of Europe. The past year has seen another transformation, with the company moving from a speculative CBM play to a proven producer of gas.

This step from explorer to producer came at the end of 2007 when the company closed the A$43.7 million acquisition of Gazonor, a wholly-owned subsidiary of state-owned mining firm Charbonnages de France.  This deal brought production and cash flows onto the books from the Nord-Pas de Calais coal mine methane (CMM) project, which comprises the Poissonnière and Désirée permits that together stretch for 579 sq km in northern France.  Last week the company announced it had been awarded...