Egdon shares jump on government's review of UK shale

Egdon Resources shares jumped on Wednesday morning, as it responded to the UK government's review of shale gas by the British Geological Survey.

The AIM-traded firm holds a “significant portfolio” of shale gas licences, covering an area of 151,742 net acres, with estimated mean volumes of undiscovered gas in place of 37.6 trillion cubic feet.

Its primary focus is the Gainsborough Trough, where the results from the 2019 Springs Road-1 well highlighted a “potentially world-class resource” in the Gainsborough Shale.

“This review is a logical and welcome move by the government,” said managing director Mark Abbott.

“Gas heats over 80% of our homes and generates around 40% of our electricity, and will continue to be an important part of our energy mix out to 2050 and beyond.

“UK shale gas could be a strategically important national resource with the potential to reduce the UK's growing reliance on gas imports, whilst reducing gas prices, improving our balance of payments, increasing tax revenues and creating skilled jobs whilst importantly also reducing the carbon footprint of the gas we all use.”

At 1230 BST, shares in Egdon Resources were up 12.16% at 4.15p.