The new blocks, when added to the existing four blocks, will increase the total area of petroleum and CSM licences held by the joint venture from 430km to more than 1800km, Eden said.

The new licences include eight blocks in South Wales, surrounding the JV's existing CSM project; five blocks in southwest England; and four blocks in Kent, eastern England.

Eden said the JV partners would jointly promote the new licences in a separate company, which will be established to exploit CSM, other sources of unconventional gas and the conventional hydrocarbon potential.

The JV partners will each hold a 50% interest in the new blocks. Eden is earning a 50% interest in the four existing blocks in PEDL 100, 148 and 149.

In other company news, Eden will begin drilling its third South Wales CSM well at Pencoed on the eastern side of PEDL 100, next week.

Eden said the area is considered prospective for the development of a conventional CSM field due to a large area of relatively flat open fields and good coal thicknesses at appropriate depths.

The area is also close to a major industrial plant and would provide a significant potential industrial market for gas with little infrastructure required to deliver the methane to consumers, the company added.