UK shale gas stocks IGas Energy Plc (AIM:IGAS) and Egdon Resources PLC (AIM:EDR) saw their prices rise in Thursday’s dealing as the government rethinks its position on fracking, which could unlock domestic gas resources unlocked to ease dependence on Russian imports.
Cuadrilla, a privately-held company, has led the UK shale gas sector which had largely stalled in recent years as projects failed to secure planning and regulatory approval.
The projects, located mostly in the North West of England, advanced sufficiently for the company and the British Geological Society to envisage decades' worth of supply, but, couldn’t advance so much for the gas to be tested commercially.
Whilst Cuadrilla had the most advanced projects London Stock Exchange-listed IGas and Egdon amassed material prospective acreage across Cheshire, Lancashire and Lincolnshire.
IGas has a portfolio of six licences across the east midlands, in a geological area known as the Gainsborough Trough.
Egdon, meanwhile, retains some 614 square kilometres under licence in its unconventional resources portfolio which focuses on what it describes as the ‘potentially world class’ Gainsborough shale.
Both companies have seen these high potential assets diminish and move to the fringes of their respective portfolios in the wake of the 2019 moratorium on fracking. A revival amidst the energy crisis and 2022’s geopolitical crises could spark a turnaround for these practically dismissed projects.
In London, IGas shares were up just over 11% changing hands at 26.22p whilst Egdon was up 8.3% trading at 3.25p.