(Alliance News) - Shares in IGas Energy PLC and Union Jack Oil PLC surged following the government's announcement today on the lifting of the moratorium on hydraulic fracking.
Shares in IGas closed up 12.1% at 106.50 pence each while shares in Union Jack closed up 10.6% at 48.00 pence each in London on Thursday.
IGas, a London-based oil and gas exploration company, said that the development of their shale assets "has the potential to provide secure and affordable energy for the UK in the near term, helping to decouple the UK from volatile and competitive international gas markets."
IGas drew attention to the data collected by the company in the Gainsborogh Trough over the past five years shows "that we have a world-class shale gas resource which is now, given the energy crisis, a strategic national asset."
The company stated that "the science, as well as the need for increased domestic production of gas, supports a lifting of the moratorium."
Chief Executive Officer Stephen Bowler said: "As well as improving our energy security the development of shale gas in the UK would reduce our carbon footprint, increase tax take, provide tens of thousands of well-paid, highly skilled jobs, a chance to reverse our balance of payment deficit and a means to level up the UK economy."
Similarly, the directors of Union Jack, the Bath-based UK-focused oil and gas company, said it could have a "material and positive benefit" when applied to the "development, appraisal and exploration activities across its various UK onshore licence interests."
The directors highlight that the lifting of the moratorium is expected to positively change both the technical and commercial dynamics in respect of certain of Union Jack's licence interests going forward.
New Prime Minister Liz Truss announced an end to the fracking moratorium today. She said that lifting the ban "could get gas flowing in as soon as six months".
The announcement comes despite the Conservative party having pledged in 2019 to keep the moratorium in place. Additionally, new Chancellor Kwasi Kwarteng wrote in March that it could take up to a decade to get enough gas from fracking.
By Chris Dorrell; chrisdorrell@alliancenews.com
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Union Jack (UJO)