Lancashire-based shale gas exploration company Cuadrilla Resources confirms that the AJ Lucas Group Limited (AJL) and Cuadrilla Boards have approved the acquisition by AJL of all of Riverstone’s shareholding interest in Cuadrilla.
Following this acquisition, AJL’s holding in Cuadrilla will increase from its current level of 47.6% to approximately 93%, with the remainder of the shares primarily held by current and former employees.
The streamlined ownership will simplify decision making and alignment as AJ Lucas and Cuadrilla continue to work with Regulators and other UK shale gas operators. The focus of this work will be to address the technical concerns in relation to induced seismicity, which led the Government to announce a moratorium on hydraulic fracturing in November 2019. We envisage limited, if any, operational activities at our Preston New Road site during 2020
We believe that by providing the appropriate data, analysis and technical expertise a successful technical resolution will allow for continued appraisal and development of high-quality UK shale gas exploration assets and the production of UK indigenous natural gas. The UK’s continued need for natural gas – in conjunction with carbon capture and storage, as a key enabler for meeting our energy needs, whilst achieving net zero greenhouse gas emissions by 2050 – is widely recognised, including by the Committee on Climate Change (CCC).
Cuadrilla’s exploration work has shown that the Bowland shale is a world class resource containing large volumes of high-quality indigenous natural gas that will flow to surface. We continue to believe that indigenous gas production is preferable to importing increasing quantities of overseas gas with up to double the pre-combustion emissions and no economic benefit for UK workers, businesses or communities.