Coal seam gas controversy hits AJ Lucas November 07, 2011 11:00 AM
Drilling company AJ Lucas Group Limited (ASX:AJL) has hit the headlines after an investigation revealed fracking conducted by its 42 per cent owned Cuadrilla Resources triggered a number of seismic events. A panel of experts has deemed that Cuadrilla Resources, who explores for natural shale gas in North West England, likely caused significant tremors and aftershocks in the British town of Blackpool earlier this year. Fracking is also known as hydraulic fracturing and refers to the process in which the rock is fractured apart by high pressure mixture to extract coal seam and shale gas. Fracking is commonly used in the US and UK but its use is becoming increasingly controversial in Australia due to reports that it causes groundwater contamination and seismic activity. A copy of the report can be found on Cuadrilla Resources’ website. The company says it is now working to implement the report’s recommendations so that it can safely resume fracking operations AJ Lucas Group reported a net loss of $11.53 million in the 2011 financial year.
Drilling company AJ Lucas Group Limited (ASX:AJL) has hit the headlines after an investigation revealed fracking conducted by its 42 per cent owned Cuadrilla Resources triggered a number of seismic events. A panel of experts has deemed that Cuadrilla Resources, who explores for natural shale gas in North West England, likely caused significant tremors and aftershocks in the British town of Blackpool earlier this year. Fracking is also known as hydraulic fracturing and refers to the process in which the rock is fractured apart by high pressure mixture to extract coal seam and shale gas. Fracking is commonly used in the US and UK but its use is becoming increasingly controversial in Australia due to reports that it causes groundwater contamination and seismic activity.
A copy of the report can be found on Cuadrilla Resources’ website. The company says it is now working to implement the report’s recommendations so that it can safely resume fracking operations AJ Lucas Group reported a net loss of $11.53 million in the 2011 financial year.