AJ Lucas Group Limited announced that it and its 47.4% owned associate, Cuadrilla Resources have entered into a farm-out agreement with a new partner, Angus Energy Plc for a share of the Southern UK PEDL 244 exploration licence which includes the Balcombe discovery. Under the agreement, subject to UK regulatory approval, Angus Energy will acquire a 25% interest in and assume Operatorship of the Balcombe Licence. The terms of the transaction require Angus Energy to pay £4,000,000 to be paid in two equal tranches, the first £2,000,000 is payable within 20 working days of 20 January 2018, and the second £2,000,000 is payable following consent from the Oil and Gas Authority for the Acquisition. Should such Consent not be received the first tranche will be refunded. The payments will be shared 25% to Lucas and 75% to Cuadrilla, in accordance with the farm-out of their respective interest in the licence. Angus Energy will also pay all of the costs of flow testing the existing Balcombe-2Z horizontal well, which Cuadrilla drilled in 2013. Planning permission to flow test the Well has already been obtained by Cuadrilla.