Cuadrilla and Curiosity

Shale instead of Slots in Blackpool?

NGFE has noted the presence of more than a couple of local government councils  visiting us to learn more about Cuadrilla Resources.  In fact, Cuadrilla is one of our most searched topics.

Cuadrilla is preparing to drill for shale gas a few miles from Blackpool in Lancashire, targeting gas trapped 10,000 feet below the surface in the Bowland shale.

The company is re-visiting attempts by British Gas attempts to extract gas in commercial quantities in the area twenty years ago.

Chris Cornelius, a founder of Cuadrilla spoke about British Gas drilling a couple of exploratory wells in the northwest.

"They penetrated through the Bowland shale [part of the same geological formation that extends to Blackpool], and the old indications were that there was gas in that shale. So we decided that this area would be prospective, and after about a year's worth of work we decided that this was the place to start."

So who is Cuadrilla?

Cuadrilla was formed in September 2007.  The founders of the privately held exploration and production company are English, though they started prospecting Spain. Hence the name "Cuadrilla" – Spanish for a group of friends.

Led by Chris Cornelius and Dennis Carlton, Cuadrilla is based Lichfield, Staffordshire, a rather unlikely place for a potential innovator in the British energy equation.

Australian engineering infrastructure, building construction and drilling services company AJ Lucas Group was a founding shareholder in Cuadrilla. However, it is the other partner in the Cuadrilla equation that raises an eyebrow or two.

In February 2010, a group of energy-focused private equity funds managed by Riverstone LLC acquired a 36% stake in Cuadrilla reportedly for $US58 million.  Riverstone is an energy joint venture partner of The Carlyle Group, a politically connected private equity underwriter.

Lord Browne of Madingley, the former BP chief executive, is Managing Director at Riverstone Holdings.   An association with BP in any form these days doesn’t shine the best light on those involved in drilling and environmental responsibility.

Lord Brown was also on watch when 15 deaths occurred BP's Texas City refinery.

As PEU Reports commented that rather than live up to his promise to make things right, Lord Browne skittered off to Riverstone Holdings.  Ironically, Carlyle connected James A. Baker, III conducted the inquiry into the BP blast. Baker is amongst other heavyweight former politicos like Presidents George H. and George W. Bush and former UK Prime Minister John Major linked to the Carlyle camp.

This all likely ‘grist for the mill’ for environmentalists who take issue with shale gas development in a former wheat field.

Cuadrilla promises a safe operation. CEO Cornelius is adamant about it.

"I think there are certain cases in the US where certain operators have been documented as having some issues and they do exist. But I think we have done everything here working with the Health and Safety Executive and the Environmental Protection Agency here in the UK to ensure that doesn't happen on Cuadrilla's location."

For the moment, there appears to be a wait and see attitude amongst the locals. Speaking to the Blackpool Gazette, Singleton councillor Maxine Chew said people were not too concerned at the moment.

Chew said: "There is gas under the Fylde and they are coming across little pockets of it all over. People aren't too concerned at the moment but if large reserves were found, there may be more worries about the impact.

NGFE is sure that all this makes for all rather interesting discussions amongst the residents of the Fylde district of Lancashire.