The Australian owner of shale gas company Cuadrilla has raised $19.7m (£11.79m) in a share placing.
The mining group, A J Lucas, said in a statement:
“Proceeds raised from the placement may be used for funding UK operations to respond to recent regulatory changes, expenditure on new and existing plant and equipment (as required and/or necessary) and for working capital.”
The group issued more than 179 million shares at a discounted price of $0.11 per share.
The placing comes a week after the formal lifting of the moratorium on fracking in England.
Last month, A J Lucas revealed that it spent about £655,000 in 2021 on strategies to overturn the moratorium and on maintenance of its UK licences. The company said it had escalated its campaign in the past year to change the shale gas regulations.
In annual accounts, the group suggested that it would need to raise money for exploration and development of UK shale gas licences. It said it was unable to use excess funds from its Australian drilling business to fund operations in the UK.
Cuadrilla’s shale gas site at Preston New Road has been largely mothballed since August 2019.
Fracking was suspended at the site after it caused a 2.9ML earthquake . This was felt across the region. Nearly 200 people reported to the British Geological Survey that the earthquake had damaged property.
A J Lucas owns 96% of Cuadrilla. 65% of A J Lucas is owned by Kerogen Capital, a Hong Kong-based private equity fund manager.