The managing director of Shell’s exploration and production subsidiary in Sweden, Martin von Arronet, said the company is close to finishing drilling of the first well.

“We will have a better idea of reserves once the results from this are analysed,” he said.

Potential reserves in the area could hold enough gas to make Sweden self-sufficient for a 
decade, according to Shell.

“Shell’s licences cover a very big area, nearly one third of the whole (Skane) county,” said a spokesperson for the Mining ­Inspectorate of Sweden.

The company was awarded 
two minerals exploration licences, Colonussankan and Hollvikengraven, in the southern Swedish region of Skane, in May 2008.

Between them, the licences, cover about 256,000 hectares and allow Shell to explore the Alum shale. A further smaller area, Colonussankan 2, of about 956 hectares was awarded in May last year.

“The licences give Shell the sole right to explore for gas in the 
area, but the right to drill is 
decided by the local county,” said Lauritz.

Shell’s plans have faced some opposition from residents and 
activists who are worried about the environmental impact if shale gas deposits are exploited on a large scale.

However, an appeal to the County Adminstrative Court in Dalarna was quashed earlier this month, clearing the way for Shell to continue drilling.

Following completion of the first well, the company plans to drill two more probes, both of which are scheduled for completion during the summer.

“Our current licence to explore runs through to the end of next year,” said Arronet.

“After that, we can apply to 
prolong it or follow through to 
the next step, which would be 
to apply for a production 
licence.”

The recent revolution of shale gas production in the US has set off activity around the globe.

In Europe, major players 
ConocoPhillips, Marathon and ExxonMobil have all signed up for shale acreage in Poland. Shell 
and Marathon are currently 
exploring Ukraine’s Dnieper-Donets basin.

Meanwhile, the Mako Trough in Hungary and the Lower Saxony basin in Germany both feature in ExxonMobil’s portfolio.

The moves also come at a time when Europe is pushing towards more self-sufficiency from Russia, which currently provides about a quarter of the continent’s gas 
requirements.

Advances in technology for 
releasing shale gas, which is trapped in rocks that have much smaller pore spaces and lower permeability than conventional gas reservoirs, have been behind the massive surge in production in the US.

Published: 22 January 2010 02:30 GMT | Last updated: 22 January 2010 02:30 GMT