During 2008, UK Methane Limited drilled three exploration wells in South Wales (source: Frack Free Somerset)
January 2008: Gerwyn establishes Newton Beach Development Company
June 2008, Bruce Vandenburg joins Global Brands SA as a non-executive director
July 2008: 13th Onshore Licencing Round awards announced (potentially running until 2039):
1. PEDL212 (North of Swansea) to Eden Energy;
2. PEDL214 (Swansea, Gower) administered by UK Methane but with 50/50 ownership between UK Methane and Eden Energy;
3. PEDL215 (Port Talbot) also admin UK Methane 50/50 ownership split;
4. PEDL216 (Merthyr Mawr) administered by Coastal 50/50 ownership split between Coastal and Eden5. PEDL217 (Bridgend) ditto
6. PEDL218 (Rhondda Cynon Taf?) administered by Eden, 50/50 ownership split between Eden and Coastal
7. PEDL219 (Vale of Glamorgan) administered by Coastal 50/50 ownership split between Coastal and Eden
8. PEDL220 (Vale of Glamorgan?) ditto
9. PEDL221 (Vale of Glamorgan?) to Eden Energy
10. PEDL223 (Vale of Glamorgan?) to Eden Energy
11. PEDL226 (Mendips) operated by UK Methane, 50/50 split between UK Methane and Eden Energy
12. PEDL227 (Mendips) ditto
13. PEDL228 (Mendips) ditto
14. PEDL249 (Kent) operated by Coastal Oil and Gas, 50/50 split between Coastal and Eden
15. PEDL250 (Kent) ditto
16. PEDL 251 (Kent) ditto
17. PEDL 252 (Kent) ditto
[as from February 2016, UK Methane/ Coastal/ UK Onshore Gas Ltd now have 100% ownership of all 10 South Wales PEDLs. Those in Kent and Somerset were relinquished before 2015]
By August 2008, UKOG had accrued a debt of £1,316 and by 2009 £1,819, in 2010 £2,109
WALES could soon have a raft of “methane millionaires” after a global energy firm announced the South Wales coalfield was saturated with the valuable gas.
It was once the miner’s deadliest enemy, causing devastating underground blasts in pit after pit and killing more than 1,000 Welsh colliers.
But yesterday, Australian-based clean coal technology firm Eden Energy opened the door for a methane-based energy supply revolution in South Wales.
After years of test drilling, the company made the first ever resource estimate from drilling for coal seam methane. And the results have been astonishing.
Perth-based Eden say the prospective recoverable resource from just one of its drilling areas (Port Talbot) could provide heat to every home in a town the size of Maesteg for the next 670 years.
Eden has a joint arrangement with Pyle-based Coastal Oil and Gas, run by Welsh businessman and energy expert Gerwyn Williams, to drill not only in Port Talbot but also in an area stretching to the Llynfi Valley above Maesteg to the North and Pencoed to the east.
Eden says the prospective recoverable methane in its Port Talbot area alone could raise 380 to 670 petajoules of methane energy.
One petajoule is equivalent to a million gigajoules and the average, well-insulated home can be heated using 50 gigajoules a year.
At today’s inflated gas prices, the value of the methane field in South Wales could run into billions of pounds.
Mr Williams, of Coastal Oil and Gas, could not comment yesterday, leaving the announcement to Eden Energy.
But a coal industry expert who has been involved in the test drilling, who did not want to be named, said Wales’ rich seam could see “methane millionaires”.
He said: “Britain has many billions of pounds worth of methane trapped in its coal seams but by far the richest carriers of methane are the seams beneath South Wales.”
Eden Energy’s executive chairman, Greg Solomon, said yesterday: “This initial estimate confirms what we have always suspected, that we are sitting on a major resource of coal seam methane at a time when prices for this commodity have never been so high. The area is also exceptionally well located, with easy access to natural gas pipelines and an unprecedented appetite for natural gas in both the British and European markets.
“There is a lot of knowledge from previous data compiled by British Gas which suggests that the gas contained in coal deposits in South Wales is up to more than twice as gassy as that from any other coal fields in the UK.
“We are immediately commencing a further review of the joint venture’s existing data from the vast British Coal mining database.
“This will be followed by drilling and testing of between six and 10 further drill holes, which should be completed within the next 6-12 months subject to rig availability.”
It seems Perth-based RISC Advisors had analysed CBM samples, and come up with the figure (according to Gerwyn’s evidence to Parliament in 2013, see further below).
RISC has participated in all the Coalbed Methane projects in Australia, as well as projects in India, China, Indonesia, Europe and Africa; provided Shale Gas support in Australia and the US and Tight Gas support in Australia, China, Vietnam, Russia, Oman and Algeria.
RISC certifies reserves and carries out audits to SPE-PRMS, SEC, NI-51-01 and other standards. The principals of RISC have also had responsibility for the preparation of reserves statements, the preparation, evaluation and implementation of oil and gas field development plans, gas and LNG contract negotiation, joint venture negotiations and evaluation of new business opportunities during their careers with major organisations such as Shell, BP, Arco, Santos, Mobil, Petrofina and Woodside.
RISC applies its understanding of how unconventional resources differ from conventional oil and gas to derive reserve and resource estimates with the discipline and thoroughness applied to the conventional petroleum sector.
RISC has carried out conventional and unconventional petroleum reserves evaluations in over 30 countries, as well as due diligence and advisory assignments on behalf many major banks including Merrill Lynch, Barclays, ANZ, BNP, CSFB, Standard Chartered, Socgen, BOSI, RBS, Macquarie Bank, CBA, RMB Banker’s Trust, Mizuho Corporate Bank / Daichi Kenyo Bank, International Finance Corporation, and JP Morgan.
October: Gerwyn appointed director of Unity Power Generation Limited. He resigned in July 2009.
For its first-year accounts Eden said “the principal activity of the company in the year under review was to develop and commercially exploit its UK Coal Bed Methane, Coal Mine Methane and Natural Gas Interests”. The accounts show zero turnover and a loss of £1,333 in administrative expenses. They also show assets of £747,669 but total assets less current liabilities at MINUS £333.
2009 Bruce Vandenburg, former Portsmouth FC Chief Operating Officer, is now CEO of Global Brands SA.
Gerwyn establishes Local Energy Supply Systems Limited
February 2009: Bascall resigns as secretary of Eden Energy (UK), replaced by Chief Financial Officer Aaron Philip Gates (also with an address in Western Australia).
July 2009: 10 0f Gerwyn’s companies are placed in administration: Unity Power PLC, Unity Power Supplies Limited, Unity Power Distribution Limited, Ocean Coal Limited, Centreclear Limited, Horizon Mining Limited, Abbey Mine Limited, Unity Mine Limited, Horizon Mineral Handling Limited, while Unity Power Generation Limited is dissolved.
September 2009: Eden Energy (UK) moves with UK Onshore Gas to Bridgend Business Centre. Its 2009 accounts show fixed assets of £282,229 and £18,391 in current assets, with a balance of MINUS £1,418.
2010: Global Brands SA attempts but fails to get the master franchise agreement on YO Sushi in Switzerland and Austria.
2010/11: The balance of Eden Energy (UK) in 2010 (total assets less current liabilities) was declared at PLUS £413,392 (although shareholders’ funds stood at MINUS £3,367), and in 2011 the figures respectively were £759,155 and MINUS £64,184.
In 2011, UK Methane Limited drilled a production well at Llangenior [in the Garw Valley, five miles north of Bridgend]. Here they had DECC permission to drill to 600metres and later 1000metres. The well or borehole is 8” diameter steel to be screwed and cemented together. At the surface is a recessed 3 metre-deep, 2 metre-diameter, hole containing valve gear. There is no external visual impact from the completed well.
May 2011: Seven Star Natural Gas Ltd becomes a subsidiary of Alkane Energy (concerned mainly with coal mine methane – collecting methane from disused collieries). All existing directors (Gerwyn and Shelagh Williams, John Killer) resign.
October 2011: Eden Energy (UK) changes name to Adamo Energy (UK).
GERWYN: BREAKING GAS 2012-16
THE STORY SO FAR…