AJ Lucas Group Ltd (AJL) said that its partner Spirit Energy would retain its interests in the Bowland shale gas exploration licences in Lancashire.
LICENCES
The Bowland licence (PEDL165) covers 1,064km and surrounds the 54.5km Elswick licence (EXL269).
The licences contain eight sites held by AJL including Roseacre Wood, Grange Hill, Anna’s Road, Becconsall, Preston New Road, Preese Hall, Clifton and Elswick.
In February 2022, the North Sea Transition Authority (NSTA) ordered the Australian company’s operating subsidiary Cuadrilla Resources Ltd to plug and abandon two shale gas exploration wells at Preston New Road on the border with Blackpool.
At the end of March 2022, NSTA said that Cuadrilla had until June 2023 to propose options for reuse for both sites.
JOINT VENTURE
In July 2020, Spirit notified the Australian company of its intention to exit the licences.
On 16 June 2022, AJL said it had reached an agreement with Spirit allowing the British company to withdraw its notice.
“As a result, Spirit will now retain its 25% participating interest in the Bowland and a 22.75% participating interest in the Elswick exploration licenses in the UK (PEDL165 and EXL269, respectively),” said AJL which retains the remaining participating interest in these licences.
“Spirit retains the option to exit the licences, should it elect to do so, before the end of June 2023, or such later date as may be agreed by the UK regulator [North Sea Transition Authority] for the continued suspension of the existing wells in these licence areas.”
EXPERTISE
“Spirit’s technical, financial, and industry-wide expertise will prove invaluable as we continue to work with the UK Government and its regulators so that the UK may benefit from a secure, low-cost domestic supply of natural gas,” added AJL’s chairman Andrew Purcell.
“We remain convinced that the Bowland shale gas resource which we have discovered has the potential to be a very significant contributor to the UK energy mix and in particular a source of cost effective fuel for heating UK homes and businesses.”