No Hot Air: “UK Shale Gas”
In the Netherlands, Cuadrilla Resources was recently awarded a license on the margin of the London-Brabant High and West Netherlands Sub-basin of the Anglo-Dutch Basin. The Epen Formation shale (Namurian) is likely the primary target in this location. Cuadrilla Resources, through its Bowland Resources subsidiary, also has interests in the Cheshire Basin in northwest England. Spudding in March 2010, the company’s Preese Hall 1 well will test the Namurian-age Bowland Shale. The depth to top shale is estimated at 4,300 ft (1,312 m) with a gross prognosed shale thickness of some 4,000 ft (1,220 m). This well is the first known test of the Carboniferous shale gas play in Europe.
Cuadrilla is hiding out in Lichfield, Stafordshire, not exactly a center of world energy finance. They don't even have a web site. But who needs to have a fancy office, when you can have two very influential and deep pocketed hedge funds backing you?
Riverstone, for example, John Browne of BP on the board besides others, but they are small fry compared to The Carlyle Group.
The Carlyle Group has had not one but both President George Bush's involved along with small fry such as John Major, James Baker, two former Thai Prime Ministers, former US Defense Secretary Carlucci etc etc. And Olivier Sarkozy half-brother of the French President. Michael Moore even alleged the Bin Laden family was involved. On a positive note, they also own Dunkin Donuts.
The point being of course that are serious money. Now it could be that $58 million out of $85 billion means only back of the sofa money or that the chairman of Cuadrilla sat next to someone at dinner and it was his lucky night. Or could they be on to something? Alistair Buchanan thinks shale gas is no big deal and John Dizard of the FT think it's all a big con. But AJ Lucas is huge in Australian infrastructure, including Gorgon LNG and pipeline and CBM amongst other things. Amateurs, they aren't.
So where is all this money going? Down a hole, not in Blackburn Lancashire, but close enough. Preese Hall Farm is in Fylde, near Blackpool.
According to E+P, this is the first Carboniferous Shale Gas Play in Europe. The area is in the same geological area as Centrica's Morecambe Bay gas field. A lot has changed in shale technology since BG found the gas uneconomic in 1999. This could be big. Maybe it will be a bust. But all those influential people sure seem to be keeping Alistair Buchanan of Ofgem out of the loop.
A few years back Blackpool in NW England tried to revive itself by seeking to be the site of casino. They lost that one, but with big players coming to put money on the table, they could still be in the money.
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No Hot Air: "UK Shale Gas"