Cuadrilla Makes Profit, Secures Injunction

UK shale gas explorer Cuadrilla has reported its first annual profit for several years and secured an interim injunction against protesters at its Preston New Road (PEDL165)  site in northwest England.

The interim injunction was awarded at the High Court in Manchester June 1 and protects Cuadrilla  - plus its named suppliers - and local farmers; they filed the request last month. CEO Francis Egan said he was pleased that the interim injunction will provide further reassurance to staff, contractors, and suppliers and the public that they can go about their lawful business without intimidation and illegal blockades; he said it is not about restricting lawful and peaceful protest.  The court will reconvene July 10 2018 to hear arguments from four named defendants who raised objections at the June 1 hearing.

Early this April, Cuadrilla completed the UK's first ever horizontal shale gas well and said it may produce by next year if all goes to plan.

In its 2017 annual results, which the privately-held company said were published June 1, net profits were $5.46mn, boosted by income from Centrica. It contrasted with Cuadrilla's net loss of $11.54mn in 2016.

In 2017, Cuadrilla benefited from carry contributions totalling $16.9mn from Centrica, of which $13.7mn related to Cuadrilla’s share of capital related project costs relating to the onshore PEDL165 drilling activities at the Preston New Road site; Centrica farmed into the licence in 2013. The $13.7mn was included as income for the year on Cuadrilla’s 2017 balance sheet.

This year, Angus Energy farmed into Cuadrilla acreage in southern England, paying Cuadrilla £3mn which be included in its 2018 results.

As at end-2017, Cuadrilla was 47%-owned by Australian drilling contractor AJ Lucas, 45% by US private equity fund Riverstone Holdings, and 8% by past and present Cuadrilla employees.