Energy: AJ Lucas jumps 19pc after news it’s not all over at its Lancashire gas field (yet)
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What a difference a few weeks makes. AJ Lucas (ASX: AJL) has jumped 19 per cent after confirmation all was not lost at a Lancashire gas field operated with Caudrilla (which it owns nearly half of).
5 weeks ago shareholders learned its gas field caused the largest fracking-induced earthquake to ever occur in the UK. Fracking was suspended and shares plummeted 36 per cent.
While fracking will not resume any time soon, Caudrilla is not giving up on the project. It will flow test the well within the next few weeks to examine how much gas could be there.
CEO Francis Egan argued there still was a “huge commercial opportunity” there. It would help the UK meet its energy needs without relying on imports and could help as a domestic feedstock for hydrogen production.
But Caudrilla has promised it will not frack until the Oil and Gas Authority’s investigation is complete and it will pay for damage caused.
Also, fracking equipment will be completely removed from the site and local environmentalists have declared they think this is the end of fracking in the UK.
Cuadrilla are removing their equipment from the #fracking site near Blackpool
And here at #ConservativePartyConference
it's the issue no one wants to talk about
— Craig Bennett (@CraigBennett3) September 30, 2019
AJ Lucas shares jumped 19 per cent this morning from this news but they were as high as 25 cents in the week before the tremor.
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