Shares in fracking companies skyrocketed after the prime minister lifted the ban on onshore drilling for shale gas.
On her second day in office, Liz Truss lifted a moratorium that went into effect in November 2019, over fears that fracking could cause small earthquakes or tremors.
Companies can now apply for planning permission to fracking what are considered massive shale gas reserves under the UK.
Green light: workers at the Cuadrilla fracking site in Lancashire. Liz Truss has lifted a drilling ban that came into effect in 2019 amid fears that fracking caused small earthquakes or tremors
Investors have anticipated the move as shares in AIM-listed Egdon have more than doubled since early August.
Director Mark Abbott praised the Prime Minister’s decision as the “logical and pragmatic response to the new geopolitical reality.”
“With Egdon’s material shale gas position, we look forward to working positively with government and local communities to deliver this nationally important resource in a timely manner,” he said.
Founded in 2003, IGas Energy said Britain’s “world-class shale gas resource” is now a “strategic national asset” given the ongoing energy crisis.
Boss Stephen Bowler said the decision would improve the UK’s energy security, increase taxation and provide a means to revive the economy.”
Charles McAllister, director of UK Onshore Oil and Gas, which represents the onshore oil and gas industry, also praised the government for its “sensible foresight” in lifting the moratorium, as shares in Egdon rose 16 percent, or 1, 2 pence to 8.7 pence and IGas gained 12.1 percent, or 11.5p, to 106.5p.
Stock Watch – Warpaint
war paint London stocks rocketed after a positive trading update.
Ahead of its half-year results later this month, the AIM-listed skincare and makeup company expects to beat market expectations for the year after “strong trading.”
Warpaint, which sells products to Boots, Asda and Matalan, expects 12-month turnover to be at least £61 million and profits in excess of £9 million.
Shares shot up 17.7 percent or 19.5 pence to 130 pence.
As the financial markets consumed the government’s massive energy package – including the freeze on energy bills at £2,500 a year from October, the FTSE 100 rose 0.3 percent or 24.23 points to 7262.06 and the FTSE 250 rose 0. .4 percent or 66.81 points to 18878.29.
Shares of Energean rose after the oil and gas group raised its annual sales and profit targets.
Rising gas prices in Egypt and Israel, where the Karish project is expected to start production within weeks, has helped Energean report a 65 percent increase in sales to £296 million ($339 million) in the six months until the end of June.
And profits rose 165 percent to £173 million ($198.2 million).
Despite the strong performance, Energean, valued at around £2.2 billion, was hit by a one-off windfall in Italy.
The group said it has already paid 40 per cent of the £25.5 million in costs and expects to have the remainder covered by the end of November.
Energean praised its “strong cash flows” after announcing a first quarter dividend of 30 cents per share.
It also reiterated its desire to return at least £870 million to shareholders by the end of 2025, pushing the share up 13.3 per cent or 166 pence to 1,411 pence.
On a bad day for retail investors, Primark owner AB Foods fell 7.6 percent, or 110p, to 1345p after warning of gains.
The dismal results swept through the industry as shares of Next fell 3.8 percent or 232p to 5816p, B&M fell 5 percent or 18.2p to 344.1p and B&Q owner Kingfisher fell 1.4 percent or 3.3p to 237.4p .
Marks & Spencer faced further pressure on its shares, which plunged to their lowest level since November 2020. Following JP Morgan earlier this week, analysts at RBC lowered its share price from 160p to 140p from 140p.
With a loss of more than 50 per cent this year, shares in the retailer, which is valued at around £2.4 billion, fell 4.2 per cent or 5.15 pence to 116.85 pence
Healthcare group DCC sealed the biggest acquisition in company history – but shares still fell 0.3 percent, or 12p, to 4790p
The group bought the medical device business Medi-Globe Technologies – which employs around 600 people – for £213 million, and the deal is expected to close in the last quarter of this year.
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