Small-cap oil & gas companies with fracking ambitions were slicker on Tuesday after a UK council approved a rival’s bid to use the controversial technique.
IGAS Energy (LON:IGAS) inflated 24.6% to 19p and Egdon Resources (LON:EDR) lifted 20% to 10.38p as North Yorkshire County Council planners approved Third Energy’s application to frack at Kirby Misperton.
It is the first time in over five years that a UK fracking project has got the go-ahead, following suspension of Cuadrilla’s operations near Blackpool, which caused earth tremors.
Energy experts held out the prospect that others could follow in its footsteps.
Michael Bradshaw at Warwick Business School said: “What we have seen, first in Lancashire, and now in North Yorkshire, is bound to be repeated elsewhere and with growing frequency.
“It seems Nottinghamshire may be the next venue as IGas is considering its options.
“Given its current strong support for shale gas development, the UK Government is not likely to declare a moratorium any time soon.”
The FTSE 100 Index bounced 50 points to 6186 as the pound climbed on a Daily Telegraph/ORB poll showing a 13-point lead for Remain.
Traders shrugged off figures showing that the UK borrowed £76bn in 2015/16 to cover its deficit, £4bn more than initially reported.
Kingfisher PLC (LON:KGF) drove the top-flight index higher, while small-cap indices were also on the up.
Kingfisher increased nearly 3% or 10.5p to 371p. Sales growth met expectations despite B&Q closures. Boosted by Screwfix, sales reached £2.7bn for the first quarter.
Topps Tiles Plc (LON:TPT) was also 3.75p, or 2.9%, higher at 135p after reporting higher first-half revenue and profits and voicing confidence about the outlook.
Halfords PLC (LON:HFD) gained 9.4p, or 2.2%, to 441.7p, after buying online premium bike and accessory retailers Tredz Limited and Wheelies Direct Limited.
But Card Factory PLC (LON:CARD) was 19.1p, or 5%, off at 361.9p after an overall reduction in footfall offset continuing growth in average spend, with first quarter like-for-like sales growth softer than levels recently achieved.
DekelOil (LON:DKO) advanced nearly 4% to 1.35p after announcing plans to raise £10.8mln to acquire an extra 30.5% stake in its profitable Ayenouan palm oil project in Cote d’Ivoire.
Redx Pharma Plc (LON:REDX) was nearly 9% healthier at 36.5p as the drug discovery and development company reached pre-clinical proof of concept stage with a potential treatment for leukaemia and other blood cancers.
New Zealand and Australia-focused Mosman Oil & Gas (LON:MSMN) made a CAD$400,000 cash investment in GEM International Resource Inc. (TSX:GEM). Shares rose 11.1% to 0.75p.
Chamberlin PLC (LON:CMH) dived nearly a tenth, or 6.5p, to 59p as the engineering group reported a hit from tougher trading and currency movements.
Building technology group Coms (LON:COMS) retreated 6.45% to 1.45p despite reporting full-year earnings above hopes.
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Preview at 6.57am
UK blue-chips are set to continues yesterday's gentle decline, after US and Asian markets retreated overnight.
The FTSE 100 is expected to open some 13 points lower at 6,123, according to spread betting quotes.
US markets last night closed modestly lower, with the declining oil price a dampener on sentiment.
The Dow Jones average retreated eight points to 17,493, the S&P 500 shed four points at 2,048 and the Nasdaq Composite also gave up four points, at 2,048.
With around an hour to go before they close, Asian markets were sharply lower, with the Nikkei 225 in Japan down 145 points at 16,600 and the Hang Seng in Hong Kong 60 points weaker at 19,750.
Japanese stocks were hit by weak trade data that showed both Japanese imports and exports sharply lower in April.
Looking ahead to today's agenda, the Bank of England inflation report hearings will be in focus, where MPs will be grilling the Old Lady of Threadneedle Street's policy makers on their view of the outlook for the economy.
Gold – US$1,245.00 an ounce, down $6.50 (0.51%)
Oil – WTI is US$47.83 a barrel, down 24 cents (0.52%). Brent crude is US$48.09 a barrel, down 26 cents (-0.54%)
Market rumour - Randy Lerner, the American sports tycoon who is selling Aston Villa to one of China’s richest men, is in line for a pay-out worth tens of millions should the club bounce back to the Premier League.
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Goldman told Green of BHS buyer’s bankruptcy: A top City investment banker has told a parliamentary inquiry that he had informed Sir Philip Green’s Arcadia Group that Dominic Chappell, the man who bought BHS, “had a history of bankruptcy” before the sale of the retailer.
Foreign investors rush to UK: Britain attracted record levels of foreign direct investment last year but uncertainty over its future in the EU has put its status as a top investment destination at risk, research shows.
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