Shares in IGas Energy PLC (AIM:IGAS, OTC:IGESF) and Egdon Resources PLC (AIM:EDR) rose on Thursday after the government formally lifted the ban on fracking in the UK as part of its push towards greater domestic energy security.
The moratorium on fracking had been in place since 2019, but it has now been lifted as the government seeks to promote gas production in the UK, where the industry is supported by local communities.
On AIM, IGas and Egdon shares gained 8.7% and 10.7% changing hands at 85p and 7p, respectively.
IGas said it welcomed the government’s actions and particularly its commitment to "more exploratory sites in order to gather better data and improve the evidence base".
In a statement, the company’s executive chair Chris Hopkinson said: "This is a significant statement from government and we welcome the commitment to pursue secure and affordable supplies of domestic energy."
“The development of IGas' shale gas assets has the potential to provide secure and affordable energy for the UK in the near term, helping to decouple the UK from volatile and competitive international gas markets.
“Aside from the clear benefits in job creation and balance of payments through producing indigenous natural gas, we will support local communities with a comprehensive benefit package," he added.