Positive results from the Lachambre production test
LATEST
FACT

The production test at Lachambre, Lorraine (Eastern France) has given good results.
The production curve and the maximum flow levels confirm the potential for development. The tested vein (n.15) has technical specifications similar to, or better than, coalbed methane (CBM) projects currently producing in Australia, Asia and North America.


ANALYSIS

This is a key step for LFDE in the context of its concession application, which should be submitted in H1 18.

In Lorraine, LFDE exploration permits have maturities ranging over 2018-19. The group should be able to apply for a concession on the back of the Lachambre test.

A word about French regulation
The French government in autumn 2017 issued a new regulation (“Loi Hulot”) to stop the issuance of new exploration permits in France.
According to the company, the government’s stance on hydrocarbon exploration only concerns new exploration permits, while the existing concessions and ongoing applications on existing discoveries would be unaffected.


IMPACT

In our SOTP, we may slightly increase the estimated probability of extracting the contingent resources in Lorraine and reduce the probability related to the Lorraine reserves, on the back of the regulatory environment.