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(Alliance News) - IGas Energy PLC on Monday said a new ban on fracking in the UK will not harm its existing licences, though peer Egdon Resources PLC is assessing the impact from the government temporarily halting the controversial drilling practice.
Union Jack Oil PLC and Europa Oil & Gas Holdings PLC both said that they do not operate any fracking activities and therefore are unaffected by the measures.
Egdon shares were 22% lower at 3.40 pence each in London on Monday morning. IGas shares were trading 9.8% lower at 32.70p apiece.
Union Jack shares were 1.2% higher at 0.21 pence each, while Europa was trading 1.4% lower at 2.15 pence apiece.
The UK government late last week introduced a temporary ban on fracking after a report by the Oil & Gas Authority found it is not currently possible to accurately predict the probability or magnitude of earthquakes linked to fracking operations.
IGas said its production and operating expenditure remains in line with expectations for the full-year.
The company added that its entire acreage in the East Midlands of England has 270 trillion cubic feet of natural gas, which it says could satisfy the UK's gas demand for 19 years.
Like IGas, Egdon has a stake in the Springs Road fracking project located in Nottinghamshire.
Edgon Managing Director Mark Abbott said: "We will now take some time to review the detail of the OGA report and the government announcement of a temporary moratorium and its implications for our business before reporting to shareholders in due course."
Elsewhere, Egdon said it has signed an exclusivity agreement with a "large internationally recognised exploration and production company" in relation to a farm-out process for its P1929 and P2304 UK offshore licences.
Egdon added: "Exclusivity has been granted to the counterparty subject to a definitive farm out agreement or other definitive legal agreement being entered into by January 19, 2020 and completion occurring by April 19, 2020.
"Given the exclusivity arrangement, discussions and negotiations with other parties have been suspended and the data room closed while the agreement is in place."
Looking ahead, Egdon said it is confident of securing an extension to its P1929 and P2304 licences which are set to expire at the end of the month. The company will also focus on presenting its case to inspectors during a public consultation in regards to the development Wressle oil field in North Lincolnshire, England.
The company's development proposals were initially refused planning consent in November 2018. The consultation begins on Tuesday and will last up to six days.
By Eric Cunha; ericcunha@alliancenews.com
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