Eden Energy Ltd is looking to spin off its wholly owned UK coal seam methane/shale gas subsidiary, Eden Energy (UK) Ltd into a new proposed ASX listing to be called Adamo Energy Ltd (Adamo). The spin off will be undertaken as soon as the market situation is deemed stable.

The company is planning to raise A$10.0 million, the proceeds of which will be diverted to funding the new float. Eden Energy Ltd shareholders will be offered priority entitlement via a prospectus.

Shale Gas Unrisked Prospective Mean Resources GIIP for part of the licence area, of which Eden holds 50%, stand at 49.8 TCF.

Eden has a significant UK landholding covering South Wales, Bristol and Kent. A possible outcome of the buy back of the 45% interest in the coal seam methane rights in two licenses that it sold in 2008 and its acquisition of 100% interest in three additional licenses in south Wales and completing its remaining farm-in obligations in the original joint ventures woul be the company holding 17 licenses with 50% stake and three licenses with 100% interest interest.

The total demand for natural gas in UK in 2009 was equivalent to approximately 3.6 TCF. UK is now a net importer of natural gas and the industrial price of natural gas in 2009 was 58% higher in the UK than in US.

Tags: Eden Energy