Front runners in the shale gas industry are starting to develop Super Pads, from which a 'spider' web of drilling can take place.
Cuadrilla has started planning this over two years ago, and all permits and its current sites are based on this advanced strategy, which is starting to get recognized. I attach an article detailing it.
Mind you, this means that Cuadrilla can expand its drilling at extremely low cost. Centrica has underwritten the cost for this, with the farm-in. On top of that Cuadrilla can attract loans once the flow rates prove acceptable, as Cuadrilla has no debt currently. This means we are leveraged for a long, free ride for the development. Coming capital raising is the last one, on the condition that the Oz operations do not screw up. Unfortunately, that is not a guarantee. The drilling division is in good shape, and the market is picking up. Overheads are now super low. The engineering and construction division will be decisive for the result swings....
