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Cuadrilla Resources

About Cuadrilla Resources

Provider of oil and gas production services.

Headquarters Location

Cuadrilla House Stowe Court Stowe Street

Lichfield, England, WS13 6AQ,

United Kingdom

44 154 326 6444



Latest Cuadrilla Resources News

New British PM sinks AJ Lucas’ fracking hopes

Oct 26, 2022

Share London | New British Prime Minister Rishi Sunak appears to have dashed ASX-listed mining services company AJ Lucas’ hopes of restarting the fracking operation of its UK subsidiary Cuadrilla Resources. Mr Sunak told parliament he would reinstate an indefinite ban on hydraulic fracturing, a method of gas extraction, which had been lifted by his pro-fracking predecessor Liz Truss. The UK government has called time on fracking ... again. AJ Lucas owns Cuadrilla Resources, a British shale gas explorer with two wells in northern England. These have been shuttered since a series of earth tremors caused Boris Johnson’s government to put a moratorium on fracking in November 2019. During the election campaign a month later, the Conservative Party’s manifesto made the moratorium indefinite. By February this year AJ Lucas had told Cuadrilla to plug the wells and look for a new use for the site. But then Ms Truss came into office in September with a promise to allow fracking in England, raising Cuadrilla’s hopes that it might be able to resume operations. Advertisement That lasted just six weeks, with Mr Sunak late on Wednesday (AEDT) telling MPs he would “stand by the election manifesto”. The manifesto says: “Having listened to local communities, we have ruled out changes to the planning system. We will not support fracking unless the science shows categorically that it can be done safely.” Share price tracks Truss AJ Lucas’ share price has followed the fortunes of Britain’s heated political debate over fracking. Ms Truss’ election as Conservative Party leader in early September sent the stock soaring. The price was 5¢ in mid-2022, and began rising as it became clear Ms Truss would win the August leadership ballot of Conservative Party members. Her victory put a rocket under the stock: from 10¢ on the last trading day before her September 5 victory, it hit a peak of 22¢ in mid-September. Advertisement But as Ms Truss’ fortunes waned, so did the share price. It was already back to 10¢ the day before her resignation last Thursday. That was partly because her prospects of survival were dimming, and partly because the government had been forced to caveat the pro-fracking policy with a community consent mechanism that presented a new roadblock. The stock closed on Wednesday at 6.9¢. Pinning hopes on the science AJ Lucas’ only hope now would be to find a way of proving that the science supports Cuadrilla. Fracking involves high-pressure, high-volume pumping of sand, water and chemicals into the wells to create cracks and release gas from the rock. The ensuing earth tremors during Cuadrilla’s test drilling in 2019 were often relatively small, but the government put the kybosh on Cuadrilla’s Preston New Road site after one that measured 2.9ML on the Richter scale. Advertisement That was well above a 0.5ML regulatory limit - and it is this cap that Cuadrilla needs to overturn. The company argues that other industries such as construction and stone quarrying are not as rigorously policed. On September 22, the British Geological Survey published a government-commissioned report into “the hazard and risk from induced seismicity during hydraulic fracturing of shale rocks”. The report did not give Cuadrilla a full green light. The BGS did acknowledge that fracking was not the only industry where induced seismicity occurred, and said some more regulatory leeway might help fracking companies mitigate the risks. But the authors pointed to “a scientific challenge” in forecasting earthquakes and their magnitude, which made it difficult to evaluate and mitigate risks from fracking-induced seismicity. This conclusion was not firm enough to pass the government’s requirement for “categorical” assurance that fracking could be carried out safely. Ms Truss and her business secretary Jacob Rees-Mogg decided to push ahead anyway, saying more drilling would provide more data to help the BGS reach firmer conclusions. Advertisement But pressure from Conservative Party backbenchers with marginal seats in the vicinity of Preston New Road forced them to set up a consent mechanism involving local plebiscites among affected communities. The Australian Financial Review has contacted Cuadrilla CEO Francis Egan for comment. Mr Egan’s most recent public statement, on Cuadrilla’s website, came on September 22, when he welcomed the formal lifting of the ban. “Lifting the moratorium will help the shale industry unlock UK onshore natural gas in quantities sufficient to meet the UK’s needs for decades to come,” he said. “The last few months have highlighted the risks associated with ever-increasing reliance on expensive, uncertain, and higher emission gas imports.” He also noted that Cuadrilla had been planning to distribute some of its shale gas revenue locally, as “a community dividend”. “This would mean each producing shale gas site could generate potentially hundreds of millions of pounds for local households, families, and communities,” he said. Hans van Leeuwen covers British and European politics, economics and business from London. He has worked as a reporter, editor and policy adviser in Sydney, Canberra, Hanoi and London. Connect with Hans on Twitter . Email Hans at Save

Cuadrilla Resources Frequently Asked Questions (FAQ)

  • Where is Cuadrilla Resources's headquarters?

    Cuadrilla Resources's headquarters is located at Cuadrilla House Stowe Court, Lichfield.



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