Cuadrilla Resources plc’s owner said that its recent AUS$19.7 million (£11.5m) fundraise may be used on the shale gas extraction project in Lancashire.
REGULATORY CHANGES
A statement from Australian owner AJ Lucas Group Ltd yesterday reported completion of the “heavily oversubscribed” placement of 179.4 million shares each at $0.11, a discount of 29%.
“Proceeds raised from the placement may be used for funding UK operations to respond to recent regulatory changes, expenditure on new and existing plant and equipment (as required and/or necessary) and for working capital,” added the company.
The possible investment on the Preston New Road project, which lies on the border with Blackpool, follows the Government‘s decision to lift the moratorium on hydraulic fracturing after nearly three years.
A J Lucas owns 96% of Cuadrilla and is itself 65% owned by private equity fund manager Kerogen Investments in Hong Kong.