British Gas Owner, Centrica, Moves on the Shale Gas Market

In an interesting development, British Gas owner, Centrica has acquired a 25% stake in Cuadrilla Resources operated Lancashire Bowland shale gas exploration licence area.

Ownership prior to the transaction was 75% Cuadrilla and 25% A J Lucas.

Centrica has paid £40 million in cash and has committed to fund exploration and appraisal costs of up to £60 million from the transaction on the Bowland joint venture.   If Centrica decides to continue into the development phase a further contingent consideration of £60 million will become available.

For more information, help or advice please contact our Energy Team on 0191 211 7777.