Shares in Ascent Resources PLC (LON:AST) rose 20% in morning trade after a favourable ruling by Slovenia’s environment agency.
It has been told it won’t have to carry out a full environmental impact assessment prior to installing a new processing facility at the Petišovci gas project.
An appeal against the decision has been lodged. However, Ascent is confident the permit will be fully awarded next year.
"I am pleased with this decision which paves the way for an early reinstatement of the permit,” said chief executive Colin Hutchison.
“This not only provides the long-term solution for the field but also underlines the support which the project enjoys amongst its partners and the authorities."
At 11am, the shares were up 0.25p at 1.55p, valuing the business at £14mln.