IMO the fall in AJL at present is just a reflection of the smashing of the crude oil/gas price. Many marginal shale produces will close & exploration will be very low.
However Cuadrilla's UK shale does not look like a marginal operation, it looks deep & free flowing but at current crude oil/gas prices the margins of future production decrease. We don't know by how much until we drill, frack & flow test. Hopefully that will happen this year.
The big expense/issue is the green movement, regulation etc .. in a highly populated country. We will just have to wait & see how those battles go.
I
AJL Price at posting:
55.0¢ Sentiment: Hold Disclosure: Held
