Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Cuadrilla says tests show gas fracked at British site is high quality

Published 30/10/2019, 05:00 am
© Reuters.  Cuadrilla says tests show gas fracked at British site is high quality
NG
-
AJL
-

LONDON, Oct 29 (Reuters) - British shale gas developer Cuadrilla said initial analysis of gas fracked from the second well at its site in northwest England is high quality and shows the country is sitting on a huge natural gas resource.

Cuadrilla began fracking at the second well at Preston New Road earlier this year but was forced to stop in August after operations caused a 2.9 magnitude earth tremor. at the first well at the site, which started last year, had already been halted several times due to seismic activity.

Regulator the Oil and Gas Authority (OGA) has suspended fracking at the second well while it carries out analysis following the tremor, but the company began testing flows from the site earlier this month.

Chief Executive Francis Egan said early tests show the gas extracted was almost free of impurities and had a high calorific, or heating, value.

"Further testing and analysis will be required to validate sustained gas flow rates," he said in an emailed statement. "There can be no doubt, however, that the UK is sitting on a huge natural gas resource of the highest quality."

Fracking, or hydraulic fracturing, involves extracting gas from rocks by breaking them up with water and chemicals at high pressure.

The government has signalled support for the shale gas industry and is keen to cut the country's reliance on imports of natural gas, used to heat around 80% of Britain's homes.

However, fracking is fiercely opposed by environmentalists who say extracting more fossil fuel is at odds with Britain's commitment to reduce greenhouse gas emissions.

Cuadrilla is 47.4% owned by Australia's AJ Lucas AJL.AX , while a fund managed by Riverstone holds a 45.2% stake.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.