New Prime Minister Rishi Sunak said the ban on fracking for shale gas in England is back, sending the shares in UK oil and gas plays IGas Energy PLC (AIM:IGAS, OTC:IGESF) and Egdon Resources PLC (AIM:EDR) shooting lower.
At Prime Minister's Questions in the House of Commons on Wednesday, Sunak said he “stands by” the party’s manifesto commitment for a moratorium on new fracking.
Business secretary Jacob Rees-Mogg had tried to overturn the rules during Liz Truss's fleeting time in 10 Downing Street, but with both gone, Sunak has returned to the previous pledge.
The 2019 Conservative general election manifesto said: “We placed a moratorium on fracking in England with immediate effect. Having listened to local communities, we have ruled out changes to the planning system. We will not support fracking unless the science shows categorically that it can be done safely.”
Igas shares tumbled 19% and Egdon's fell 20% on Wednesday lunchtime.