Realm Energy has made applications for exploration licenses for 1.65 million acres in the Paris Basin.  The applications comprise nine separate exploration permits and include all rights to explore for oil & gas in all formations underlying the lands.  The time frame for making applications for the licenses has ended.   Realm Energy has entered into a farmout agreement (the “Farmout Agreement”) with ConocoPhillips for the purpose of conducting joint exploration activities on selected exploration licenses that may be awarded as a result of these applications.  The Farmout Agreement provides Realm Energy with a limited carry on exploration expenditures and financial incentives conditional on acreage acquired and activity levels permitted by the Government. Realm Energy will be the designated operator for the initial exploration phase; ConocoPhillips has the option to operate thereafter.  The Farmout Agreement is conditional on the final award to Realm Energy of permits for a portion of the lands in the Paris Basin, and government approval of the joint participation of Realm Energy and ConocoPhillips.

Craig Steinke, Chief Executive Officer of Realm Energy, stated, “ConocoPhillips brings a wealth of experience in oil & gas operations as well as a high level of health, safety and environmental standards. Realm Energy is looking forward to working with ConocoPhillips on joint operations in France and having a long and successful partnership.”

Exploration activities in the Paris Basin are currently restricted by the Government of France so as to prohibit hydraulic fracturing as part of the petroleum exploration and development process.  In connection with their joint exploration activities, Realm Energy and ConocoPhillips will comply fully with all relevant legislation governing petroleum operations in France.

Chief Executive Officer Craig Steinke was interviewed by the national daily newspaper for an article discussing the tremendous shale gas potential of France’s Paris Basin and the revolutionary technologies being imported from the US and Canada to reach the resource.

Visit globeandmail.com or click the image below to read the full article.

“A year or two from now, the activity over in Europe is going to be absolutely frenetic, and so you’ve got to get in there early,” said Craig Steinke, executive chairman of junior explorer Realm Energy International (TSXV:RLM).

Realm, which has offices in Vancouver and London, is involved in eight different shale basins in seven European countries, though it doesn’t disclose specifics for competitive reasons.

The likes of ExxonMobil Corp. (NYSE:XOM), Royal Dutch Shell PLC (NYSE:RDS), ConocoPhillips (NYSE:COP) and Chevron Corp. (NYSE:CVN) have begun to grab stakes in shale formations in Poland, Germany, Hungary, Ukraine and other European countries.

Some may wonder why North American companies would look for shale opportunities across the Atlantic when there are plenty of promising plays in their own backyard.

“In North America as a whole, the lands have been bid up to significantly high prices,” said Steinke.

“If you don’t have the land, you’re on the outside looking in.”

In Europe, energy companies can negotiate directly with government authorities to acquire large, contiguous tracts of land – though it may not be that way for long if activity picks up, said Steinke.

“Realm’s goal is to be an early mover on acquiring the lands. It’s going to put the company in a very advantageous position as the momentum builds,” he said.

“The opportunity won’t be there forever, that’s for certain.”

Shale is a ubiquitous type of sedimentary rock that is as tough as concrete. Freeing natural gas molecules from within the rock is no easy feat as it requires enormous amounts of water, chemicals, sand and, above all, technical know-how.

North America’s shale gas industry has its roots in the Barnett formation in north-central Texas, where energy companies began honing their techniques about 10 years ago.

Since then, horizontal drilling and multi-stage fracturing have spread to the Marcellus play in New York and Pennsylvania, the Haynesville play in Texas and Louisiana and the Horn River and Montney plays in northeastern British Columbia.

Realm collaborates with U.S. energy services giant Halliburton Co. (NYSE:HAL), which has been active in virtually all of North America’s shale gas plays.

Halliburton has been helping Realm parlay expertise it garnered from North American shale gas plays into European ones, which share many of the same characteristics.

European shale gas is also on the radar of Talisman Energy Inc. (TSX:TLM), already a big landholder in the Marcellus and Montney formations.

“We haven’t done any deals yet, but we are looking hard and depending on how things go, we could see an entry into an international opportunity,” Richard Herbert, Talisman’s executive vice-president of exploration, said on a conference call with analysts and reporters earlier this month.

Another reason European shale gas could be attractive is pricing. North America is currently dealing with a glut situation, in which supply is outpacing demand.

European countries are also eager to stop relying on natural gas imports from Russia, which has had a history of suddenly shutting off supplies amid disputes with its neighbours.

It’s going to take several years of work before European shale gas is commercially viable, said Michael Dawson, president of the Canadian Society for Unconventional Natural Gas.

Energy companies already know all the ins-and-outs of North America’s geology because so much conventional oil and gas drilling has taken place there. That’s not the case in Europe, he said.

There also isn’t much there in the way of specialized equipment needed to drill the high-tech wells. So all of that has to be built or transported from elsewhere.

“I think there has to be a realization that while everybody seems to be getting on the bandwagon with shale gas right now, it just doesn’t happen overnight,” said Dawson.

“It’s not a slam dunk that the shale gas potential in Europe is going to be successful.”

- By Lauren Krugel for The Canadian Press

SOURCE:
MSN.ca: “North American players looking at shale gas opportunities in Europe”

Realm Energy is now concentrating on eight discrete sedimentary basins in seven European countries and submitted applications for oil and gas rights that collectively extend over 1.5 million acres of land. Realm Energy received confirmation of receipt from government bodies that its applications are under active consideration.

“After months of rigorous evaluation, confirmation that our applications are under active consideration is an important step toward our goal of acquiring oil and gas rights over significant lands containing high-potential shale formations,” said Craig Steinke, Executive Chairman. “We stand behind our extensive evaluation process and strongly believe that Realm Energy is positioned to maximize the possibility of favorable outcomes from these applications.”

SOURCE:  Scandinavian Oil-Gas Magazine

Mr. Lancaster is a Chartered Accountant who has had a distinguished career in executive and board positions.  Mr. Lancaster spent 20 years with Deloitte & Touche, the last five of which were as a partner in the Vancouver office, and following this, he served as Executive Vice President and Chief Financial Officer of the First City group of companies for 10 years.  In 1992, Mr. Lancaster joined the Vancouver International Airport Authority as Chief Financial Officer until 1998 when he joined Lions Gate Entertainment Corp. as Senior Vice President and CFO.  In August 2000, he joined Power Measurement Inc., a Victoria-based high-tech company; a world leader in the design, development, manufacture and marketing of enterprise energy management systems to energy consumers and suppliers.

In 2004, Mr. Lancaster joined Ivanhoe Energy Inc. as Chief Financial Officer where, until his retirement in November 2009, he was responsible for all financial accounting and reporting, including SEC and Canadian regulatory and public disclosure compliance. Mr. Lancaster was also responsible for corporate finance, including the sale of securities and related prospectus filings, negotiations of bank financings, risk management and treasury and cash management.  During this career, Mr. Lancaster has also served on the Boards of Directors of several public and private entities.

“We are very pleased to have Mr. Lancaster join the Board of Realm Energy,” said Craig Steinke, Executive Chairman. “His wealth of experience, especially in the oil & gas industry, will be an invaluable asset to the company. We look forward to his contributions as Realm Energy actively focuses on continued growth and success in developing European shale gas.”

Steinke continued, “Realm Energy would also like to take this opportunity to thank Mr. Stuart Macgregor for his past support.  While he has resigned as Director, we look forward to an ongoing relationship with him as an active shareholder.”