AJ Lucas has announced its board approved the acquisition of Riverstone’s interest in the UK shale gas explorer, Cuadrilla Resources. Following this acquisition, AJL’s holding in Cuadrilla will increase from 47.6% to c 93%.
Under the terms of Cuadrilla’s shareholders’ agreement, it is a requirement that AJL offers to acquire the shares of Cuadrilla’s remaining shareholders on the same terms as those being acquired from Riverstone, a process that is now ongoing. The remainder of the shares are primarily held by current and former Cuadrilla employees.
The transaction should simplify decision making and alignment as AJL and Cuadrilla continue to work with Regulators and other UK shale gas operators, providing information to allow the UK Government to lift the current moratorium on hydraulic fracturing. AJL currently trades at A$0.08/share.
Author: Carlos Gomes