Project Profile
Location: Lancashire, northern England, UK
Reserves: 200 trillion cubic feet of gas in place
Area: 100 square kilometres
Start-up Year: 2015
Centrica has bought a 25% stake in the Bowland shale gas license in Lancashire, northern England. Centrica has paid a sum of US$63 million to Cuadrilla Resources and Cuadrilla’s major investor, AJ Lucas, in order to acquire the 25% interest in exploration license (PEDL 165). Centrica has also agreed to pay exploration and appraisal costs of up to US$94 million. So far in the UK no commercial shale gas production has taken place, but Cuadrilla has plans to begin the hydraulic fracturing of wells in the Bowland shale next year once it has completed a series of environmental impact assessments. once the exploration and appraisal phase is completed if it then elects to continue into the development phase it would make a further contribution of up to US$94 million to the project.
The new deal will see Cuadrilla hold onto operatorship with a 56.25% stake with Centrica on 25% and AJ Lucas on 18.75%. The exploration and appraisal programme will see two or possible three new wells drilled next year but there will be no drilling in 2013. The partners will look for other potential drill sites over the next few years. Cuadrilla is currently planning its fourth well. Cuadrillia is currently processing and interpreting 3D seismic over a 100 kilometre-square area. After the exploration and appraisal programme the partners will run a pilot production phase in order to establish how the resource can be commercially developed. This could possibly happen in 2015 but not before. Initial data suggests that there could be 200 trillion cubic feet of gas in place at Bowland.
Cuadrilla Resources received approval of the UK secretary of state for communities and local government to hydraulically fracture four wells. (October, 2016)
Operators:
Cuadrilla Resources: Operator with 56.25% interest
Centrica: 25% interest
AJ Lucas: 18.75% interest