European Gas’ (ASX: EPG) shares have rocketed 31.43% to A$0.46 by close of trade today, likely fuelled by expectations that it may start a drilling program to establish reserves at its French coal seam gas assets.
By close of trade, 844,501 shares worth a total of A$352,010 changed hands, sending shares up from their close of A$0.35 last night.
European Gas is currently evaluating funding options for a drilling campaign that will target the conversion of up to 7.5 trillion cubic feet of gas resources into reserves.
Its Folschviller-2 multi-lateral horizontal coal seam gas well in the Lorraine region had flowed gas at commercial rates when scaled to the length of coal that will be contacted in a full appraisal well.
The produced gas is also of high quality while the produced water is fresh with no contaminants.
Notably, the success was made purely through the use of horizontal drilling technology as well as work by the operating team. No fracture stimulation was carried out.
The company had also flagged that it would not sell its two royalty agreements with Buru Energy (ASX: BRU) as they have become a major asset due to Buru’s successes in the Canning Basin.
Permits covered by the 2% Buru royalty includes EP 371, where the Canning Basin player has started an extended production test on its Ungani oil field.
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