Tomorrow the licensing round closes regarding new exploration areas in the UK. Award early next year.
Be assured that Cuadrilla will sign up for it, as some other players and new entrants.
Two things people do not seem to realise:
1. shale acreage is for free.
In the US it started at around $50 an acre and it has been going for prices between $10.000 and $20.000 at later stages. So it is an interesting exercise to extrapolate 'any number' to the Cuadrilla shale.
2. Cuadrilla has more knowledge then most (or all) of the other players in terms of geology and experience.
They drilled (also for third parties) more for shale then anyone else in the UK.
3. Surely there is some type of 'reward' when it comes to granting acreage to a company that is instrumental in developing this resource, now recognised by government as a key element to the energy equation.
This should have a strong impact on the share price. The question is when...
I think Igas is also an interesting share, but at the same time I would not be surprised if they go for a share issue. This is my personal guess.
