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Reabold Resources PLC shares jumped on Friday following the UK government's announcement of the lifting of the moratorium on hydraulic fracturing onshore in the UK.
Reabold is a London-based oil and gas company with projects in the UK, the US and Romania. Its shares were up 11% to 0.46 pence each in London on Friday morning.
On Thursday, UK Prime Minister Liz Truss announced an end to the country's fracking moratorium, as part of her plan to tackle the cost of living crisis.
The decision comes despite the Conservative party having pledged in 2019 to keep the moratorium in place. Fracking has faced heavy criticism from opponents who have long warned that it can cause earthquakes, water contamination, noise and traffic pollution.
However, Truss said that lifting the ban ‘could get gas flowing in as soon as six months’, helping to tackle the energy price crisis.
‘Reabold welcomes this change in policy and notes that it could have a materially beneficial effect on the company's UK onshore business, including the potential to exploit additional resources within its existing licence interests and other potential opportunities,’ Reabold said.
However, back in March, Kwasi Kwarteng, who was business secretary at the time and is now chancellor, wrote in The Mail on Sunday: ‘Even if we lifted the fracking moratorium tomorrow, it would take up to a decade to extract sufficient volumes and it would come at a high cost for communities and our precious countryside.
‘No amount of shale gas from hundreds of wells dotted across rural England would be enough to lower the European price any time soon.’
Truss also announced a £2,500 ‘energy price guarantee’ will apply in England, Scotland and Wales from October 1. This is said to cost up to £150 billion.
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