The shale gas company, Cuadrilla, has announced a loss of $17.671m for the 12 months ending 31 December 2015, up from $11.568m on the previous year.
Accounts for the parent company, Cuadrilla Resources Holdings Ltd, showed that operating and administrative expenses were similar in 2015 and 2014 ($17.5m: $16.3m).
But in 2015 revenue from its well services business, including rig hire, was down to $219,000, compared with $5.17m in 2014.
During 2015, Cuadrilla sought planning permission to drill, frack and test for shale gas at two new sites in Lancashire at Preston New Road and Roseacre Wood. Both were refused by Lancashire County Council and, following the company’s appeal, they were considered at a 19-day public inquiry in spring 2016.
Earlier this month, the Communities Secretary, Sajid Javid, granted permission for the Preston New Road application and said he was minded to approve Roseacre Wood.
Cuadrilla’s chief executive, Francis Egan, said in the accounts:
“The year ahead will be a pivotal and exciting one for Cuadrilla. Assessing the commercial viability of shale gas production in the UK is a national imperative, as reliance on imported gas to heat our homes, fuel our industry and generate electricity continues to rapidly grow.”
He said the company planned to begin work towards the end of the year at its Preston New Road shale gas site.
“We expect to be drilling wells in the first half of 2017 and testing the flow of gas from those wells in the second half.”
“This consent has given Lancashire a big vote of confidence in its economic and energy future and we are proud to be at the forefront in delivering this exciting opportunity for the County.”
Preston New Road Action Group, which opposes Cuadrilla’s plans, has begun a legal challenge to Mr Javid’s approval.
The public inquiry into Roseacre Wood, is to be reopened to give the company another chance to demonstrate the site can be developed without risk to highway safety.
Mr Egan said:
“I am encouraged that the Secretary Of State is minded to grant subject to further consultation on highways conditions and we look forward to demonstrating that we can meet these requirements.”
In Yorkshire, where Cuadrilla won exploration licences amounting to 1,274km2 in last year’s 14th round, the company said it would be undertaking desktop studies of the new acreage over the next year.
The accounts said Cuadrilla remained debt-free and financed by its shareholders. Ownership of the company is:
- 45% A J Lucas, an Australian mining group
- 45% Riverstone/Carlyle Global Energy and Power Fund IV (Cayman) LP, a US-based fund specializing in investments in energy and power companies
- 10% Cuadrilla management team and employees
Cuadrilla’s directors were paid $1.515m in 2015. The highest paid received $716,000, according to the accounts.
Corporate and social responsibility statement
Under community, the statement said:
“We strive to be a good neighbour, recognising our responsibility to work in partnership with the communities in which we operate. We understand this means regularly communicating (listening and responding) with those communities.”
Under environment, the statement said:
“We believe that preserving a clean, safe, healthy environment can go hand in hand with meeting our energy needs. We are committed to a programme of management and continuous improvement to minimise any direct or indirect environmental impacts that may be associated with our business operations”.
Revenue: £219,000 ($5.174m 2014)
Operating expenses: $9.64m ($8.292m 2014)
Administrative expenses: $7.815m ($8.011m 2014)
Loss for the year: $17.671m ($11.568m 2014)
Directors pay: $1,515,000, highest paid director received $716,000
Operating leases for vehicles, land and buildings: $663,000 ($847,000 2014
Charitable and community related donations $64,000 ($76,000 2014)
Updated 30/10/2016 to correct two typos and broken links