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Barclays loan to fracking company rises to £19.4m

190306 Third Energy loan

Rising value of loan to Third Energy. Source: Companies House

The company behind fracking plans at Kirby Misperton in North Yorkshire has increased its loan from Barclays to £19.4m.

Third Energy posted notices last week with Companies House about the latest increase in the value of the loan – the fifth in the past 12 months.

The loan was first described in May 2017 as a bridging loan facility of £7.5m to the Cayman Islands-based Third Energy Holdings Limited. It was made by Northwharf Investments Limited, a subsidiary of Barclays Bank plc.

Three other Third Energy companies are listed on the charge: Third Energy Onshore LtdThird Energy Services ltd and Third Energy Trading Ltd.

Since the original loan, the value has risen by nearly £12m or 260%. Before the most recent increase, there were rises in December 2017 and April, September, November and December 2018.

Barclays PLC is listed as the ultimate parent company of Third Energy Holdings Limited. Campaigners have submitted a freedom of information request to the Oil & Gas Authority about whether Third Energy had a guarantor in case anything went wrong at Kirby Misperton or it went out of business.

The most recent accounts for Third Energy UK Gas – the operator of the Kirby Misperton site and a subsidiary of Third Energy Onshore Ltd – revealed liabilities of £63.9m and annual losses of £3.5m. The accounts said Third Energy UK Gas Limited was dependent on sourcing finance to fund further exploration and development:

“the company will require significant capital expenditure to develop the conventional and unconventional resources of £14m, £5m of which is forecast in the next 12 months. In addition, the Company needs further cash injections even to operate without the additional capital expenditure.”

Since then, Third Energy has committed to drill three wells and frack in the next four years in the Ryedale area of North Yorkshire.

  • On Saturday 30 March 2019 People & Planet and Momentum are organising a day of action called Bankrupt Climate Change with protests at Barclays branches. Details

Categories: Uncategorized

33 replies »

  1. “Cayman Islands-based Third Energy Holdings Limited.”

    Says it all doesn’t it, the Cayman Islands are an offshore tax haven for the purposes of tax avoidance from the UK Inland Revenue.

  2. Excellent that Barclays are willing to invest in gas production in the UK. It makes me very pleased that I switched all of my accounts to Barclays a couple of years ago.

    • These product placement ads are very getting very intrusive aren’t they?
      Oh dear here comes the jingle:

      “For hands that dish dirt
      Can make you soft in the head
      With Mad Few Barclays Banksters….”

      Just press “Skip Mad” to return to the real world

  3. Have to say Judith, that you are very much in the minority. More have left than joined this toxic bank in the last 12 months.

    • Waffle – in this case size matters. I really don’t thin Barclays are going to worry too much that a few crusties with very little money no longer use their services

  4. Too subtle, Judith. You first have to start at the point that some antis don’t realise that Barclays, in this case, is a bank!

    As far as I can tell, it is still Barclays intention to dispose of non core activities as has been imposed upon most banks since the financial crash. On that basis, any funding and/or new drilling will be to tart up Third Energy and make it attractive to a buyer. Just like painting a house prior to selling it.

  5. Money down the drain. Cuadrilla has failed to frack and seem to be plotting their way out. It has been 8 years and not a single molecule of gas has been produced (for the grid).
    The UK shale industry looks like a hype that is perpetrated to milk as much investment as possible.

      • And there is always:

        “We make money the old fashioned way. We print it out of thin air…”

        Or

        “We’d like to sell the world a Joke….”

        • Phil C. Have you noticed Barclays’ TV advert where they take young people on a trip to, of all things, a wind farm? Talk about two faced.

          • Hi Pauline, no i didn’t, i haven’t owned a television for years now, and when i see it at other houses it makes me even more determined not to have one, but from evidence of past advertising gold standards i would say that honesty and integrity aren’t exactly in the banking advertisement vocabulary?

            They’d like to fill the world with bucks
            And furnish it with greed
            Burn apple trees and honey bees
            And snow-white turtle ducks

            They’d like to frack the world and make
            It abject slavery
            They’d like to sell it with their arms
            And make it cor-por-ate

            They’d like to see the world they planned
            Our hands and feet in chains
            Hear HG’s echo through the hills
            And fumes throughout the land

            (That’s the greed we hear)
            They’d like to ruin the world we dwell
            (Let the world down today)
            Into climate change of hell

            They’d like to frack the world to death
            In fossil slavery

            They’d like to make the world their own
            And turn it into shares
            Trash apple trees and honey bees
            Into coal-black toxic zones

  6. Barclays makes their money from banking and financial products. They make no money from shale so far. So to imply Barclays is a failed company is incorrect. But say their investment in UK is a smart choice is also incorrect because they are losing money in UK shale and right now UK shale does look like a dud rather than stud.

  7. You cannot make an omelette without breaking some eggs,
    The UK Shale market is trying to gain headway. Although with the omelette analogy protesters and couch specialists are tarnishing the UK employment, tax and pensions potential by reading the uneducated and, biased literature to hand and instead of making an omelette, the UK would be satisfied with, they are using sabotage techniques to escalate the costs involved with extracting shale gas, which hypocritically is costing the UK tax purse in policing and regulation. These monies would be better suited policing crime and the inevitable but instead they are being utilised to police illegal campsites and vigilante protesters, with their main AIM and intentions on bankrupting Barclays and Cuadrilla which are involved in said onshore prospecting activities. These same companies are the key ingredient in the omelette investing and funding the self interest linked pension dividends our pensioners are being paid currently, and again in the future decades for these so-called protesters.
    Oh the lunacy at work in denying the UK an Onshore Shale province, Shame on you all!!

    • You would be better commenting on the Great British Bakeoff but remember , you cant put broken eggs back together.

        • Eli-Goth. Energy to bake cakes? We’d all have starved by now if we were depending on Cuadrilla. Remember last year when Francis Egan said Lancashire people would be cooking their Christmas dinners with his gas? That went well, didn’t it?

          • So, in the meanwhile, Pauline, people can cook their bread with Donald’s gas. Shame it doesn’t contribute to UK taxation.

          • Pauline Jones:
            He did say, but did he say what year? Come on it takes time to drill, test and produce a gas well safely and to the UK’s well integrity regulations!
            Every industry has its first, Cuadrilla have had to deal with the logistics and nonsense from uneducated anti frackers, who i must add obviously enjoy the trappings of energy, heat, cooking, lighting, etc… where have all the Guerilla warfare protesters gone?, they have fairly changed their FB pages and dropped off the radar, maybe job interviews were getting abit thin? Haha…

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