4th Feb 2014 12:14
LONDON (Alliance News) - Energy firm Cuadrilla Resources Ltd has announced two new UK shale gas exploration sites in Lancashire.
Staffordshire-based Cuadrilla said Tuesday it is consulting local residents on its plans and will now apply for planning permission to drill and frack at sites at Roseacre Wood and Preston New Road.
"The company intends to apply for planning permission to drill, hydraulically fracture and test the flow of gas from up to four exploration wells on each of the sites," Cuadrilla said in a statement.
Cuadrilla said separate applications will also be made to install two seismic arrays that would be used to monitor the fracking process and the independent planning and environmental consultancy Arup will prepare an Environmental Impact Assessment for each of the new exploration sites.
The British Geological Survey estimates there may be 1,300 trillion cubic feet of shale gas present in the north of England alone.
The news comes as France's Total SA, a major oil and gas company, completed its deal to start fracking operations in the UK after buying a 40% stake in the PEDL139 and PEDL140 licences from Egdon Resources, Igas Energy, Dart Energy and eCorp Oil & Gas.
Hydraulic fracturing, otherwise known as fracking, involves extracting gas trapped in shale by pumping in pressurised water and chemicals.
In the US, fuel prices have falling sharply as fracking has become commonplace across such states as North Dakota and Mississippi.
However, so far in Europe fracking has had mixed results - often being either controversial or unreliable. In the UK, there have been major protests against the method, which critics fear will pollute water tables in rural areas and may cause small earthquakes.
Cuadrilla Resources is privately owned by its management team and two investors, AJ Lucas and Riverstone LLC.
AIM-listed IGas shares were down 2.5% to 126.75 pence, while Egdon shares, also traded on AIM, were down 7.3% to 25.50 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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