Cuadrilla 'In Advanced Talks' to Sell Stakes in UK Shale Operations

Cuadrilla Resources, pioneer of shale gas mining in Britain, is in advanced talks to sell a stake in its UK shale gas operations, according to shareholder AJ Lucas Group Ltd.

“Cuadrilla’s negotiations with leading energy companies are at an advanced stage,” Sydney-based AJ Lucas said, according to agency Bloomberg.

 Cuadrilla Chairman John Browne declined to comment Tuesday while attending a conference in London.

The British government’s lifting of a moratorium on hydraulic fracturing, also known as fracking, at the end of last year, opens the way for companies to begin drilling wells and tap into shale resources. Cuadrilla’s Bowland Basin in northwest England holds about 200 trillion cubic feet of gas, the company has said, although only a fraction of that will be recovered.

“Cuadrilla is currently negotiating a farm-in to Bowland with a leading energy company,” said AJ Lucas, 43.7% shareholder in Cuadrilla, without naming the potential investor.

 See also: Cuadrilla Places £136Bn Value on Shale Gas Resources