Most of the official exploration licences issued nearly a decade ago in England’s bid to go “all out for shale” no longer exist.

They were said to mark the start of a revolution that would “transform” UK industry. But no wells were drilled in any of the licences granted to target shale gas.

Some licences were handed back. Others ran out of time. A few were never taken up.

The licences, known as PEDLs (petroleum exploration and development licences), give operators exclusive rights to explore for oil and gas, providing they also have various permissions. Without PEDLs, companies cannot drill or produce.

The most recent PEDLs were offered in 2015 in the 14^th round, an auction organised by the industry regulator, under the then energy secretary, Ed Davey.

To industry acclaim, 60 PEDLs were issued where the main target was described as shale gas.

Jim Ratcliffe, chairman of the would-be fracking company, Ineos, said in a statement:

“The UK government has demonstrated it is determined to move forward with this exciting new industry. This is the start of a shale gas revolution that will transform manufacturing in the UK.”

DrillOrDrop research has revealed that 52 of the 60 shale gas licences issued from the 14^th round no longer exist. These lost PEDLs represent more than 85% of the total shale gas licences granted in the auction.

We compared these 60 licences, advertised in the London Gazette, with those now listed in the regulator’s database. Just eight 14^th-round shale gas licences are still held.

Our findings show that many shale gas licences issued to leading companies no longer exist. These include:

• 22 issued to Ineos, the biggest winner in the 14^th round.
• 7 issued to Cuadrilla, the only company to carry out high volume fracking in England
• 3 each issued to IGas (now Star Energy), Hutton and Egdon Resources

At least three companies issued with 14^th round shale gas licences, Celtique, Hutton and Warwick, have gone out of business.

Official reports show that at least 16 English shale gas licences from the 14^th-round were relinquished by the industry in the five years from 2018-2023.

Last week, a disclosure by Cuadrilla revealed that more PEDLs had been lost across the industry this summer (2024) because the period allowed in the licence for exploration had expired.

Cuadrilla’s chief executive, Francis Egan, blamed the moratorium on fracking in England, in force since 2019:

“A number of our shale gas exploration Licences in Yorkshire and the Midlands reached the end of their Initial Exploration Terms in July 2024.

“We applied for an extension to these Licences on the grounds that the moratorium on fracturing had prevented us from effectively fulfilling the exploration work programmes.

“The oil and gas regulator declined our extension application, as it also did for other onshore operators, and these Licences have therefore terminated.”

The regulator, the North Sea Transition Authority (NSTA) would not comment on individual licences or companies.

But a spokesperson said:

“Licences can be extended if the request meets the requirements set out in the Model Clauses in the relevant licence and NSTA’s requirements [set out in our published onshore decision making framework]. In such cases, we expect licensees to propose a firm plan to achieve work commitments and for the licensees to meet our financial and technical competency criteria.

“These licences were not revoked; they came to the end of their initial term and the request to extend that term was not granted by NSTA.”

Research by DrillOrDrop also revealed that a further 23 licences issued in the 14^th round to target conventional oil and gas or coal bed methane have gone since 2015. This leaves five remaining 14^th-round licences in this category.

Which shale gas licences disappeared?

Most of the lost 14^th-round shale gas licences were in northern England and the midlands.

The largest number was in North and East Yorkshire, where seven have disappeared from the official register in each county.

Six licences went in Nottinghamshire, five in both Lancashire and South Yorkshire and four in Derbyshire.

Other counties to lose 14^th-round shale gas licences included Somerset (3), Cheshire East (3), Greater Manchester (3), Cheshire West and Chester (2) and  Lincolnshire (2.

Who lost what?

Cuadrilla

Cuadrilla’s recent disclosure did not name the PEDLs it lost in July 2024.

But in 2023 the company announced the NSTA had granted one-year extensions to the exploration term of several of its 14^th-round licences. DrillOrDrop established these included: PEDL276 in South Yorkshire and PEDLs 288, 333 and 346 in East Yorkshire.

Cuadrilla had originally committed to drill one well in each of these PEDLs and to frack in PEDL276.

No exploration sites were established in any of these Cuadrilla PEDLs and NSTA no longer lists any of them as current licences.

Also in 2023, Cuadrilla’s announced it had given up three shale gas licences: PEDL287 and PEDL342 in East Yorkshire and PEDL290 in North Yorkshire.

Cuadrilla continues to have an interest in a 14^th-round shale gas licence, PEDL347, in North Yorkshire. The company secured an extension for a year in 2023. Since then, it has transferred operation of the licence to the Heyco group (formerly Egdon Resources) and PEDL347 continues to be listed as an existing licence.

Cuadrilla’s licences to explore and produce shale gas near Blackpool in Lancashire also remain. They were granted in earlier licence auctions, before the 14^th round. Licence EXL269 runs until 2026 and PEDL165 runs until 2039. These licences cover the mothballed Preston New Road shale gas site. The site’s planning permission runs until June 2025.

Ineos

Ineos was the big winner in the 14^th round, securing the largest number of shale gas PEDLs allocated to a single company.

DrillOrDrop research shows that it no longer operates any shale gas licences.

The following 22 shale gas licences, awarded to the company in the 2015 auction, no longer exist:

• Cheshire East and Chester: PEDL296
• Cheshire West and Chester: PEDLs 292 and 294
• Derbyshire: PEDLs 300, 308 and 349
• East Yorkshire: PEDLs 289 and 332
• North Yorkshire: PEDLs 280, 282, 283, 284, 285 and 291
• Nottinghamshire: PEDLs 299, 303, 307, 309 and 311
• South Yorkshire: PEDLs 272, 301 and 304

Ineos continues to operate four older licences (PEDLs 120, 145, 193 and EXL273) and has interests in two existing 14^th-round shale gas licences (PEDLs 273 and 316), both issued to IGas (now Star Energy).

IGas/Star Energy

Three licences originally granted to IGas, now Star Energy, no longer exist. These are PEDLs 293 and 295 in Cheshire East and 305 in South Yorkshire.

The company continues to hold three 14^th-round shale gas licences: PEDLs 273 and 278 in West Yorkshire (acquired from Celtique) and PEDL316 in Lincolnshire.

An older licence, PEDL139, where IGas drilled for shale gas at Misson in Nottinghamshire, still exists. It was granted in 2004 and is due to expire in 2035. Another Nottinghamshire licence, PEDL200, where IGas drilled the unsuccessful Tinker Lane well has gone.

Other companies

The other companies whose issued shale gas licences no longer exist include:

Aurora: PEDLs 261 and 262 in Lancashire.

Egdon Resources: PEDLs 306 (Nottinghamshire), 334 and 339 (Lincolnshire)

Hutton Energy: PEDLs 264 and 269 (Greater Manchester) and 275 (West Yorkshire)

Reach: PEDL260 (Cumbria)

South Western Energy: PEDLs 320, 321 and 344 (Somerset)

Third Energy: PEDL259 (Redcar and Cleveland)

Warwick Energy: PEDLs 263 (Lancashire), 298 (South Yorkshire) and 302 (Derbyshire)

Remaining shale gas PEDLs

There are just eight remaining shale gas PEDLs from the 60 shale gas licences offered in the 14^th round in 2015.

These are currently held by the following companies:

• PEDL267: Aurora Energy Resources in Lancashire
• PEDL273 and 278: Star Energy in West Yorkshire
• PEDL316: Star Energy in Lincolnshire
• PEDL327 and 329: South Western Energy in Dorset
• PEDLs 343: Europa Oil & Gas in North Yorkshire
• PEDL 347: Heyco Group in North Yorkshire

There are no current planning permissions for explore or produce shale gas in these PEDLs.

However, Europa recently revealed proposals to drill and carry out a proppant squeeze (small-scale frack) at a site at Burniston in PEDL343, north of Scarborough. The company has not yet submitted applications for planning permission or an environmental permit.

Earlier this month, Europa, told investors it was planning to drill at Cloughton (also PEDL343), the neighbouring village to Burniston. The company said seismic permitting was underway and the planning and environmental process had been “initiated”.

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