Total shares rise as it announces new gas discovery off UK

Total shares rise as it announces new gas discovery off UK
Written by:
Ilona Billington
24th September 2018

Total shares are higher Monday, after the energy firm announced a major new gas find off the UK coast. The Glendronach prospect is located offshore, west of Shetland and tests suggest it could yield some one trillion cubic feet of gas for commercial use.

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By around 1205 BST, Total shares were 1.38% higher at €55.66. The stock has been a little mixed in recent weeks activity.

Total’s new gas find

Total announced its new gas find early Monday. The Paris-based firm said the newly discovered field could be developed relatively quickly, thanks to the existing infrastructure around the nearby Edradour field and the Laggan-Tormore facilities of the Shetland Gas Plant.

“Glendronach is a significant discovery for Total which gives us access to additional gas resources in one of our core areas and validates our exploration strategy,” said Arnaud Breuillac, President Exploration & Production at Total.

“Located on an emerging play of the prolific West of Shetland area, the discovery can be commercialized quickly and at low cost by leveraging the existing Laggan-Tormore infrastructure,” Breuillac added.

Total has a 60% interest in the Glendronach gas field, the remaining 40% is split in half, with 20% each owned by Ineos E&P UK Limited and SSE E&P UK Limited.

Good reservoir quality gas

Total detailed that its initial drilling, which went to a depth of 4,312 metres, indicated a high quality Lower Cretaceous reservoir.

“Preliminary tests confirm good reservoir quality, permeability and well production deliverability, with recoverable resources estimated at about one trillion cubic feet,” the energy firm said.

The exploration began in May and the results are good news for the UK as a whole, but also the local area of Scotland where the new find is located.

“This discovery is good news, and will ensure that Shetland remains a vital part of the UK’s Energy industry for many years to come,” said Alistair Carmichael, the MP for Orkney and Shetland, according to an Energy Voice article.

“The waters to the West of Shetland are difficult to work in but as this discovery shows there are big rewards to be won,” he added.

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