Shale explorers IGas Energy (LON:IGAS), Dart Energy and Egdon Resources (LON:EDR) have completed the farm-out of their licences in Nottinghamshire and Yorkshire to French oil and gas giant Total.
Under the farm-out agreement, Total will take a 40% stake in production exploration and development licences 139 and 140 in the Gainsborough Trough.
IGas will be the operator for the licences, which cover an area of 240 square kilometres (km2) and which border PL178 and PEDL006 at Beckingham, an existing IGas producing field.
Total, through Total E&P UK, has agreed to pay US$1.6mln of back costs while funding a fully carried US$46.5mln work programme. It has committed to a minimum spend of US$19.5mln and will later become operator of the licences.
The programme will include the acquisition of 3D seismic, the drilling and testing of a vertical exploration well and, depending on the success of the testing of the exploration well, the drilling and testing of a second appraisal horizontal well.
Following the completion, Total will own 40% of 139/140; Dart Energy 17.5%; Egdon 14.5%; Island gas 14.5% and eCORP oil 13.5%.
Shares in iGas have risen by 20% since Total announced its investment, while the smaller Egdon has tripled in value.