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

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33 replies »

  1. Why is it these anti fracking protesters are hell bent on the finances of these companies?, i am more interested in how these protesters can afford to protest 24/7?,
    Eddie & Helen lets see your bank accounts statements.
    Ponzi schemes if i was third energy i would do them for libel!

    • Eli-Goth, because without investment Fracking wouldn’t exist.
      Without promise of profits investments in Fracking wouldn’t exist.
      Barclays Bank must see profits and consider Climate Destruction to be a price worth paying!
      Personally I don’t!
      You must be without children to think differently!

      • Hi Peter: Without any investment in any industry nothing would exist,
        The Gas is there and the Profits would be forth coming, Pease tell me again how much profits the Renewables industry has paid back from the HUGE government subsidies which have been paid out and will be for the next 30 years, (please don’t get me started on the Irish energy incentive scheme)!
        Bank are known to raise capital and loans and invest in a business which shows promise, or they wouldn’t invest / loan or have not interest in such. Climate Destruction, That’s been happening since the first day of the industrial revolution. Do you believe the UK as a pin prick of fracking in the energy industry, stemming back Fracking will make any difference to the 1600 NEW coal power stations being built currently around the world.
        I have children and both in the Oil Industry and also 3rd generation Oilers. We are learning everyday new techniques, to produce and extract energy. And don’t lay that typical anti-fracking guilt trip about Children!! That argument is getting old!!

  2. No, Peter. I have children and they are in favour of fracking. They are also part of the worlds 18% who have flown in an aircraft, wish to continue to do that and recognise a lot of the other 82% have similar desires. Which is why every major airport in the southern half of the UK currently have major expansion programmes in the pipeline.

    Sorry, you have your moral compass but don’t try and place yourself on a pedestal because of that.

    “Personally, I don’t”-might not be so exciting, but more appropriate.

    Interesting though to see the large increase in children references upon DoD. Becoming an “alternative” to Mothercare.

  3. Sadly what mr Goth doesn’t understand, like anyone who supports fracking in the UK, is that the article so well put forward by Eddie and Helen, is that fracking in the UK is not profitable, that is why the loan is being written off. The economics of fracking do not work in the UK. The subsidies to renewables are one tenth of what the fossil fuel industry receives.

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