(Alliance News) - Egdon Resources PLC shares jumped on Friday on the back of the UK government lifting of the the moratorium on shale gas extraction and its commitment to reviewing shale gas policy.
Shares in the Reading-based oil & gas exploration company were up 9.0% to 7.90 pence each in London on Friday morning.
Egdon's response follows a statement on Thursday from UK Business & Energy Secretary Jacob Rees-Mogg, which said that the government is determined to "realise any potential sources of domestic gas".
The move is part of the government's attempts to tackle the energy price crisis.
The decision comes despite the Conservative party having pledged in 2019 to keep the moratorium in place. Fracking has faced heavy criticism from opponents who have long warned that it can cause earthquakes, water contamination, noise and traffic pollution.
Rees-Mogg also suggested that limits on acceptable levels of seismic activity are too restrictive.
Egdon Managing Director Mark Abbott said: "We look forward to working positively with government to develop the right regulatory environment to realise the potential of indigenous shale gas, which in contrast to a growing reliance on imports, could have a positive impact on the UK's energy security whilst delivering environmental, fiscal and community benefits and thousands of well paid, skilled jobs."
By Sophie Rose; sophierose@alliancenews.com
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