Centrica acquires 25% of UK shale license

Centrica PLC has acquired a 25% interest in the Bowland exploration license in central England from Cuadrilla Resources Ltd. and AJ Lucas for £40 million cash.

Centrica PLC has acquired a 25% interest in the Bowland exploration license in central England from Cuadrilla Resources Ltd. and AJ Lucas for £40 million cash. It also committed to pay exploration and appraisal costs of as much as £60 million if development proceeds.

Three exploration wells operated by Cuadrilla, of Lichfield, UK, have confirmed the presence of natural gas in the Carboniferous Bowland shale.

The British Geological Survey recently estimated the Bowland shale resource at 822-2,281 tcf of gas in place (OGJ Online, June 27, 2013).

Centrica, of London, said initial data suggest 200 tcf in place in the Cuadrilla’s license, but further drilling is required to determine commerciality.

AJ Lucas is an Australian service provider.

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