Shale Gas News and Information
Cuadrilla's Oz partner trades again
- Written by Nick Grealy
- Published: 26 December 2011
AJ Lucas, the Australian drilling services provider has had shares suspended since May for other reasons, but trading starts Wednesday Oz time. AJL is the only way of outside investors getting into Cuadrilla Resources the UK company which has had some promising initial results and estimates in Lancashire, so they are naturally interested in talking up their investment. AJL holds 42% of Cuadrilla, with the rest held by hedge fund Riverstone and the management team. So we shouldn't be surprised if the CEO of AJL tells the Sydney Morning Herald
If the science is what we think it is, it's a very substantial resource,'' the chief executive of AJ Lucas, Allan Campbell, tells BusinessDay. ''It comes down to what the rocks say - they've got all the answers.
The final few words interesting. It's only natural that AJL want to talk the find, and themselves up, but is this simply natural Oz ebullience or something more?
''If you're clever and lucky you can put your foot on something pretty significant in value indeed - that's still the business model for the company,'' Campbell says.
He said he set out to make ''10 times'' his initial outlay on Cuadrilla. Having spent $73.6 million so far, exacerbating AJ Lucas's cash flow problems, Campbell says he is unsure whether that is achievable, but remains hopeful of a big return.
''We're not looking to double or treble our money, let's put it this way.''
Having been one of the big surprises of 2011, 2012 will be more of a lower scale one to watch year for Cuadrilla as they do the hard work of letting the rocks talk. Or is that shout?