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Oklahoma deal signals growing trend for hard-to-extract ‘tight gas’

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Oklahoma deal signals growing trend for hard-to-extract ‘tight gas’

Published: July 19 2008 03:00 | Last updated: July 19 2008 03:00

BP is expanding its gas operations in the US, paying $1.75bn (£875m) for properties in Oklahoma that could hold 2,000bn cubic feet of “tight gas” – gas that is trapped in rocks from which it will not flow easily.

The deal is the latest example of growing interest in tight gas, which requires advanced methods to extract at commercially attractive rates.

On Monday, Royal Dutch Shell announced an agreed C$5.9bn (£2.9bn) deal to buy Duvernay Oil, a gas producer in western Canada.

The assets acquired by BP are now producing 50m cubic feet of gas a day, but BP believes it could raise that to 200m cubic feet, doubling its production in the region.

Resources such as tight gas and oil sands are becoming attractive to big international oil groups.

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