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.
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