Major Cuadrilla investor backs out amid controversy over fracking in the UK

The Canary

Private equity firm Riverstone has sold its stake in Cuadrilla, the UK’s only fracking firm.

The US firm has lost its patience with the nascent UK fracking industry, selling its 45% stake to Australian mining firm AJ Lucas, which was already Cuadrilla’s largest shareholder.

The value of the deal, which has seen AJ Lucas increase its stake to approximately 93%, has not been disclosed.

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Cuadrilla said the remaining stake in the company is primarily owned by current and former employees.

Riverstone hired advisers from the Royal Bank of Canada to assess the potential for a sale in September, according to reports.

It is understood the investment group grew increasingly frustrated as Cuadrilla has struggled to produce and sell natural gas amid government regulation and massive public opposition to the practice.

The fracking firm believes there are significant shale gas reserves beneath Lancashire but saw its most recent extraction attempt suspended after causing an earthquake registering 2.9 on the Richter scale.

Cuadrilla
Cuadrilla was forced to halt operations at Preston New Road last year (Cuadrilla/PA)

Its fracking operations are now inactive after the UK government launched a moratorium in November, halting the production method and exploration with immediate effect.

However, three days after the government’s moratorium announcement, it issued a document saying it will consider fracking applications “on their own merits” in the future.

AJ Lucas said it believes the moratorium will eventually be lifted, as it announced the move which it said would also simplify decision-making.

The company said it envisages “limited, if any, operational activities”, at the suspended Preston New Road site in 2020.

Cuadrilla said it is “providing the appropriate data, analysis and technical expertise” for a resolution which it believes would allow shale gas exploration in the UK.

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  • Show Comments
    1. Hopefully Long-Bailey’s husband can put pressure on BWA water additives, to stop supplying the Fracking industry. Being that he earns £100k plus for promoting their products though it’s unlikely.

    2. I sent this email update to Tory govt Minister had no reply as of yet WHY Boris??
      ///
      FREEDOM OF INFORMATION ACT REQEST/FRACKING
      Email sent –dated 4.2.2020
      To Tory Govt members plus over parties for true clarity on FRACKING
      ///
      Hi
      All Govt members

      This is a Freedom of Information Act request we HAD put in now to get answers
      ON FRACKING out of Tory Govt Minister/Boris/our local M.P. Mr. Stephenson as well
      ////
      for information From Tory Govt Minister +our Tory local M.P. Andrew Stephenson/of Pendle area
      We resident of Lancashire/P.B.C./Colne area
      Wish to know if fracking is to start back up in 2020—2021-time frame in Colne yes or no?
      And all over place of Lancashire like Blackpool again??
      ////
      We know Tory Govt Minister, Ms Leadsom stopped it to gain voters in Dec 2019 G.E.
      But she stated it was only on hold for now???–So what decision as Tory Govt + Boris made now
      On fracking the hell out of Lancashire /Pendle/Colne area (Will it be banded fully yes or no?)
      Remembering this ‘true’ fact Tory Minister + Boris/ and our local area Tory M.P.
      it is costing British taxpayer vast amounts of public cash now – (for NO Gas retune at all)
      ///
      We resident wish a response now we have sent more than 1 email to you all on this matter
      But you all seem fit Not to reply to residents/ voters on fracking matters in Lancashire -WHY?
      It is now time to come clean Tory Govt members in LONDON.
      ////
      This is now a freedom of F.O.I. Act request we will give you 30 days to respond
      Or we will take more action at this end of country.
      ////
      This matter is very’ important to us residents and need an URGENT reply from Tory Govt,
      Ministers plus our local area Tory M.P. of Pendle/Colne.
      That pays out our public taxpayer money to the firm fracking in U.K.
      But so far, we have had NO gas for our cash
      Therefore, the Tory Govt is funding Fracking with our public money,
      (taxpayer cash)
      (A possible? chocolate tea pot out come here)
      (our public money being wasted now)
      Us taxpayers paying a big rich firm for nothing again this wasted cash here could fund our local areas Boris.
      So, you can keep your promises to us of new funding in our poor area of Lancashire,
      You promised us Boris in Dec G.E. 2019 – FOR OUR VOTES—Boris.
      ///
      We resident of Lancashire/Pendle/Colne/Trawden/
      area wish a true reply please now.
      That leaving the E.U. as started to move on
      (we wish a reply to this email on FRACKING please)
      //
      Let’s hope we get the truth now residents plus voter of Lancashire/Pendle/Colne/Trawden areas

    3. Update post to fracking
      https://www.thecanary.co/
      Dated 7.2.2020
      //
      To Cuadrilla firm + Australian mining firm AJ Lucas
      Including our Tory Govt/Minister /Boris.
      Firstly, Tory Govt when are you going to reply to me truthy?
      //
      We British taxpayer wish our money back Tory Govt have’ paid
      In funding to Cuadrilla already for nothing to be delivered (NO-GAS)
      //
      Therefore, before you fracking firms do a runner out of the U.K.
      Fracking sites please return our public cash to us U.K. Taxpayer.
      Remembering this ‘true ‘FACT most of us residents of Lancashire
      /Pendle/Colne, area wish no fracking at all now Tory Govt.
      //
      ON me reading the article here Cuadrilla are Not interested in safty
      Or our resident’s wisher Not to frack as this article just proves,
      they are more interested in cash funding only.
      Whining because a backer as pulled out of fracking mess.
      //
      I do hope Tory Govt take note here of this article before giving,
      any more of our U.k. taxpayer money away to Cuadrilla+ A.J Lucas,
      just to keep the rich already broad member of both firms happy
      and in a lifestyle out of U.K. they like to live.
      ///
      Boris STOP our public taxpayer money funding Fracking firms
      And get back our taxpayers cash your party has already,
      paid them for nothing Boris (i.e.no gas at all)
      only big drilling site holes in our Lancashire countryside.

    4. Fracking is actually a money loser in the long run for private investors, and so ideally they go for public money as a subsidy to finance it. I wonder if this will happen.
      Godzilla is 93% now owned by AJucas. Damn spelling mistake. Its Caudrilla.
      Far bigger companies than AJLucas have lost more money on such a risky bet.
      Public money for the loser as compensation?
      They’d try anything for cash.

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