UK Shale Companies Register Negative End of the Week

Companies focused on shale gas in UK reported two setbacks at the end of the week. 

While iGas was reporting a 23% year-on-year decrease in revenues for the year ended 31 March 2015, Cuadrilla confirmed its commitment to produce shale gas in Lancashire, after the scorching decision reported on Thursday about its plan for Roseacre Wood. 

IGas released its production figures on Friday, also reporting a marginal decrease in production, despite almost doubled net assets (from £74.3m in March 2014 to £146.6m in March 2015). Net debt increased by almost 7%.

On the other hand, company’s officials presented the good news too.

“Having implemented cost savings across the business, and following the completion of the farm-out to INEOS in May, with £46.4m of cash on the balance sheet as 31 May 2015, and up to $285m available from our partners for a gross carried work programme, the Group is well placed to deliver against its strategy” Stephen Bowler, Chief Executive Officer, said in a note. 

Also on Friday, Cuadrilla expressed its opinion on recent developments. On Thursday, Lancashire County Council rejected its application to proceed with hydraulically fracturing at the  site near Blackpool in northwest England. Cuadrilla management reacted on Friday. 

“We are disappointed but not surprised that Lancashire County Council’s Development Control Committee has denied planning consent for our application at Roseacre Wood…  We are committed to the responsible exploration and development of the huge quantity of natural gas locked up in the shale rock deep underneath Lancashire.  We will now take time to consider our options, including our right to appeal” Cuadrilla wrote in a note.