Lucas’ investment strategy is to use its proprietorial knowledge of unconventional hydrocarbon gas recovery to identify and acquire prospective properties otherwise overlooked by oil and gas companies. This knowledge has been acquired through the Company’s development of specialised drilling techniques and their application in geological conditions where hydrocarbon recovery has previously been considered too difficult for the acreage to be commercially viable.
These areas are then drilled to prove up the presence of recoverable hydrocarbon reserves, following which the acreage is sold to an energy major. The objective is to deliver superior returns to shareholders over and above those generated by the Company’s operating activities.
This strategy has been effective with substantial gains realised in 2008 from the sale of :Lucas’ investment in the Gloucester Basin and again in 2010 with the sale of our interest in ATP651 in the Surat Basin. Our investment portfolio is now centred on Europe through our shareholding in Cuadrilla Resources, and on East Texas, through our shareholding in the Monument Prospect.