Shares in UK-listed fracking firms rocketed today after French energy giant Total became the first oil major to invest in Britain’s fledgling shale gas industry.
Shares in Egdon Resources shot up 40% while IGas Energy and Dart Energy rose by 10% and 13% respectively after Total bought a 40% stake in two exploration licences in Lincolnshire controlled by their consortium.
Total will initially invest about £30 million in the licences, regarded in the sector as a significant first step. Patrice de Vivies, Total’s senior vice president for Northern Europe, said: “This opportunity is an important milestone for Total UK and opens a new chapter for the subsidiary in a promising onshore play.”
Total’s partners in the project will be Dart Subsidiary GP Energy with 17.5%, Egdon (14.5%), IGas (14.5%) and eCorp Oil & Gas (13.5%). Shares in Egdon jumped by 3.82p to 13.32p, IGas rose 11.5p to 119.3p and Dart was ahead by 0.015p at 0.13p.
Video: Shale gas 'huge opportunity'