AJ Lucas Group (ASX: AJL) and its 44% owned associate, Cuadrilla Resources Holdings have sold a 25% interest in shale gas exploration licence PEDL 165 (the Bowland Joint Venture), located in Lancashire in the UK.
The interest was sold to a wholly-owned subsidiary of Centrica plc.
Centrica has paid £40 million in cash to acquire subsidiaries of Lucas and Cuadrilla, which together own 25% of the Bowland Project, resulting in proceeds to Lucas of £10 million and to Cuadrilla of £30 million.
Centrica has committed to fund £60 million of expenditure on the Bowland Joint Venture from the transaction effective date of 1 January 2013.
For Lucas, this farm-in to the Bowland Project means that it will not need to commit funding for its direct share of Bowland activity in the near future.
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