This website uses cookies primarily for visitor analytics. Certain pages will ask you to fill in contact details to receive additional information. On these pages you have the option of having the site log your details for future visits. Indicating you want the site to remember your details will place a cookie on your device. To view our full cookie policy, please click here. You can also view it at any time by going to our Contact Us page.

Baseefa Ltd

Centrica teams up with Cuadrilla to develop UK shale

13 June 2013

Centrica, the parent company of British Gas, has taken a 25% stake in the Bowland shale exploration licence area from operator Cuadrilla Resources and its Australian partner AJ Lucas. Cuadrilla and AJ Lucas will each sell part of their stakes in the licence to Centrica as part of the £40 million ($63 million) deal.

Centrica will commit to drilling a series of six wells with fracking specialist Cuadrilla to test the area’s shale gas potential in a follow-on investment worth £60million. 

The Bowland shale licence area covers 450 square miles of Lancashire between Blackpool and Preston and Cuadrilla has estimated that it could contain 200 trillion cubic feet (tcf) of gas. Experts say that even if only 10% could be recovered it could provide an important new source of gas for the UK, which uses about 3 tcf a year.

Cuadrilla has so far attempted to frack one shale gas well but operations were suspended in 2011 after it caused two small earth tremors, leading to an 18-month fracking ban. The companies will need to secure a series of permits before they can embark on the planned drilling.

Depending on how that round of exploration and appraisal work goes, Centrica has an option to continue to a development phase where it will invest another £60 million, bringing the group’s investment to £160 million.

Former BP chief executive Sir John Browne sits on the board of Cuadrilla and is also a partner in Riverstone Holdings, which holds a 41% stake in the company, with AJ Lucas holding the remainder.


Contact Details and Archive...

Print this page | E-mail this page

CSA Sira Test