Investors backing closely-held Cuadrilla Resources, which pioneered UK shale gasoline drilling earlier than changing into mired in crimson tape, are exploring choices together with an outright sale of the corporate.
Shareholders together with personal fairness agency Riverstone Holdings LLC, which has a direct 45% holding, and Kerogen Capital, which holds an oblique stake, have employed the Royal Bank of Canada to check methods to money out of their funding, stated individuals conversant in the matter, asking to not be named as a result of the data is personal.
The financial institution has been working with the buyers for months, they stated. No ultimate determination has been made and the deliberations could not result in a transaction.
Cuadrilla has struggled to provide and promote any pure gasoline on account of widespread opposition to its hydraulic-fracturing know-how, also called fracing. Investors have been ready for it to complete work on a properly in northwest England, which is presently suspended after inflicting an earthquake registering 2.9 on the Richter scale final month.
Cuadrilla declined to remark. Riverstone and RBC didn’t return requests looking for remark, whereas an exterior spokesman for Kerogen wasn’t instantly in a position to remark.
Kerogen owns 53% of Australian energy-service firm AJ Lucas Group Ltd., which holds 48% of Cuadrilla, in keeping with knowledge compiled by Bloomberg and Cuadrilla’s web site. Kerogen’s stake in AJ Lucas, constructed up since late 2011, is now valued at about A$58 million ($40 million). The worth of AJ Lucas’s shares has fallen virtually 90% over that interval.
AJ Lucas, based mostly in Australia, didn’t reply to a request looking for remark exterior of enterprise hours.
Cuadrilla has been attempting for greater than a decade to show Britain has commercially viable portions of shale gasoline. If it does, the nation might partly replicate an power growth seen within the U.S., which reversed its standing as a serious web gas importer. However, native opposition within the UK and completely different rules governing fracing have made it virtually not possible for Cuadrilla to appraise the nation’s gasoline reserves.
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