Third Energy Ltd and Cuadrilla Resources Ltd hope to appraise a conventional gas prospect covering the companies’ onshore licences PL081 and PEDL347 in Ryedale, Yorkshire.
CONVENTIONAL
Under the agreement, yet to be approved, Third Energy will operate and entirely fund an appraisal well to assess the potential commerciality of a natural gas prospect in the relatively shallow Sherwood sandstone.
The company, owned by American energy investor Alpha Energy, will hold 75% and Cuadrilla 25% of any resultant gas production.
Cuadrilla’s owner, Australian company AJ Lucas, said that the gas play was conventional and no hydraulic fracturing would be required.
“It is recognised in the UK Government’s White Paper that natural gas will continue to be an important energy source for the UK for decades to come as it transitions to net zero by 2050,” said AJ Lucas chairman Andrew Purcell.
“Developing indigenous onshore resources is environmentally and economically preferable to increasing reliance on gas imports, particularly LNG imports.
“We are pleased to be partnering with Third Energy to appraise this prospect.”
ASSETS
Cuadrilla’s interests include Preston New Road, Becconsall, Clifton, Elswick Roseacre Wood, Singleton, Weeton and Westby all in Lancashire; Balcombe, West Sussex; Cowden, Kent; Lingfield, Surrey; and Yorkshire.
Third Energy’s interests include nine petroleum exploration licences and gas wells in Yorkshire as well as geothermal projects undergoing evaluation.