logo-loader
viewUnion Jack Oil PLC

Union Jack and Europa higher after shrugging off UK fracking ban

In a major reversal of policy on Saturday, the government announced that fracking, or hydraulic fracturing, will be halted in England immediately following a series of earthquakes at a site in Lancashire

Union Jack Oil PLC - Union Jack and Europa shrug off UK fracking ban
Fracking involves pumping high-pressure water, chemicals and sand underground to split shale rock and release oil and gas

Union Jack Oil PLC (LON:UJO) and Europa Oil & Gas Holdings PLC (LON:EOG) have reassured investors that their operations will not be affected by a recent decision by the UK government to ban fracking.

In a major reversal of policy on Saturday, the government announced that fracking, also known as hydraulic fracturing, a method of pumping high-pressure water, chemicals and sand underground to split shale rock and release oil and gas, will be halted in England immediately following a series of earthquakes at the country’s only fracking site at Preston New Road in Lancashire.

READ: Union Jack Oil upgraded by broker after West Newton discovery

The Department for Business, Energy & Industrial Strategy said a report by the industry regulator, the Oil & Gas Authority (OGA), had concluded that it is “not currently possible to accurately predict the probability or magnitude of earthquakes linked to fracking operations”, and as a result the practice will not be allowed to continue.

READ: Europa Oil & Gas showcases potential of Atlantic licences as it says talks with interested parties continue

On Monday morning, Union Jack said the decision will have “no impact” on its current or future operations and that it has “no intent to engage in hydraulic fracturing operations in England, neither now nor in the future”.

Similarly, Europa said it has “no involvement” in fracking operations in the UK and that the ban will have “no impact on Europa’s conventional oil production and development activities in England”.

Investor’s seemed to breathe a sigh of relief in early trading, with Union Jack’s shares rising 1.4% to 0.2p while Europa was 0.9% higher at 2.2p.

--Adds share price--

Quick facts: Union Jack Oil PLC

Price: 0.2025 GBX

AIM:UJO
Market: AIM
Market Cap: £24.52 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Union Jack Oil PLC named herein, including the promotion by the Company of Union Jack Oil PLC in any Content on the Site, the Company receives...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Investor Update: Union Jack's West Newton potential confirmed

Headlines from the Proactive UK newsroom. Union Jack Oil (LON:UJO) has been informed by the operator that the Kirkham Abbey reservoir in the West Newton project area contains a base case 146mln barrels of oil and up to 283mln barrels in a best case. The liquid element is much higher than...

5 days, 14 hours ago

2 min read