Lucas Report Confirms Cuadrilla Success
A year-end report by Australian based AJ Lucas Group Ltd confirmed that its 41% owned associate Cuadrilla Resources Ltd., has successful fractured its first shale gas exploration well in the Bowland Basin near Blackpool.
AJ Lucas said that drilling costs were more than expected, however fracturing carried out to date has established the shales will fracture and gas will flow to surface. The company said that a second well also recently completed.
In late August, Mark Miller chief executive of Cuadrilla told the Financial Times that results from drilling were "exceeding expectations".
"We’re very encouraged by what we’re seeing.” He added: “Acre for acre, I think the gas in place here is very comparable to – and in some cases exceeds – some of the good [resources] in the US.”
AJ Lucas provides engineering infrastructure, building construction and drilling services to the property, utilities, water, coal and oil & gas sectors in Australia and the Asia-Pacific.
Shares of capital constrained group were suspended from trading on the ASX on May 25 on account of speculation regarding proposals for the recapitalisation.
Source: AJ Lucas