The Australian owner of Cuadrilla says it is carrying out a review of the company’s costs following the fracking moratorium.
A J Lucas acquired Riverstone’s shareholding in Cuadrilla in February 2020, taking its interest to 93%.
In a trading update, A J Lucas (AJL) said:
“AJL has undertaken a detailed review of the carrying costs of the UK shale gas explorer.
“While this remains ongoing, AJL confirms significant progress has been made in rightsizing the business to meet the hiatus in 2020 operations following the initiation of a moratorium in the UK on hydraulic fracturing.”
DrillOrDrop reported in December 2019 that key staff were leaving Cuadrilla as the company scaled down the fracking site at Preston New Road near Blackpool.
At least 10 had gone in recent months, including the senior geoscientist, financial controller, communications manager, director of public affairs and the executive assistant to the chief executive.
Earth tremors induced by fracking at Preston New Road led to the government moratorium on fracking in November 2019.
Earlier this year, Cuadrilla said it envisaged “limited, if any, operational activities” at the site.
The company predicted a “successful technical resolution” that would allow continued appraisal of UK shale gas.
A J Lucas said in the update it had implemented measures on workforce safety and social distancing for staff to reduce exposure to coronavirus in the UK and Australia. It said:
“Cuadrilla remains focused on working with industry peers and Industry Regulators to provide information to allow the UK Government to lift the moratorium as soon as practical given the constraints initiated to control the COVID-19 pandemic.”